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Irish milk processors convert milk, a product with 87% water, into products that they sell on global markets.
What milk price they pay suppliers depends on the returns they get for that product.
If they have the option to make different products and can switch milk supply between milk plants, then they can potentially get higher returns.
Wave of investments
Given the wave of investments in driers in the past 10 years, it is welcome to see investments being made in cheese – even some non-cheddar cheese plants.
This helps improve the overall balance to the product mix and hence the pricing of milk.
Partnerships with specialists in specific areas can help de-risk these investments and bring benefits to marketing and distribution.
In the last two years, partnerships such as Dutch company Royal A-Ware with Glanbia, Norwegian company Tine with Dairygold and Ornua with Carbery allow milk processors to concentrate on efficient processing and allow the specialists focus on maximising returns.
On Monday 16 November between 2pm and 3pm, we will hold a special webinar
This week, we publish the annual Irish Farmers Journal/KPMG milk price review. It shows the manufacturing milk price as calculated by dividing the total amount of money paid out to milk suppliers divided by the total volume of litres collected to get a price per litre.
It’s not ranked or standardised on milk solids, so better fat and protein collected means processors will be placed higher up the annual milk price review league table.
On Monday 16 November between 2pm and 3pm, we will hold a special webinar to discuss how the review takes place.
We will be able to take your questions based on the features as published in the Irish Farmers Journal this week.
Email webinar@farmersjournal.ie or jkennedy@farmersjournal.ie or text 087-908 2651.
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