From the record highs of December 2022, NI dairy farmers have seen a collapse in prices paid for milk.
The latest official figures published by the European Commission, when converted into Sterling, confirm that NI is not alone in seeing big reductions in prices during 2023, with similar reductions being experienced by many major European producers.
However, others have started from a higher base, and the NI reported price in May 2023 is among the lowest in Europe, ahead of only Latvia and Lithuania. While some of the difference can be explained by lower butterfat and protein percentages in local milk, NI is also highly exposed to the vagaries of commodity markets, and puts a low percentage of milk into liquid outlets.
Major producers such as Germany, France, Denmark and the Netherlands all reported official prices around the 40p/l mark in May. In Britain, the official price is 37.81p/l, while in the Republic of Ireland it is 36.56p/l. That compares to a NI price of 32.82p/l.
Price drop
Since December 2022, NI prices are down nearly 20p/l, and if we compare this to January 2023, it is a price drop of around 12p/l. On July volumes, that 12p/l cut equates to over £25m in lost income coming to NI farms.
Earlier in the summer local co-ops were optimistic that markets would turn this autumn, but that optimism has waned. On Tuesday, the first GDT event for August saw continued weak demand from China, recording a 4.3% drop in the index price to 918, its lowest level since September 2020.
While it is not a direct comparison, back then base prices where in the region of 27p/l.
Butter fell 0.7%, with skim milk powder down 1.4%. Whole milk powder price plummeted by 8%.
Read more
Strathroy leads on price for June milk
MPI drops to 21-month low point
From the record highs of December 2022, NI dairy farmers have seen a collapse in prices paid for milk.
The latest official figures published by the European Commission, when converted into Sterling, confirm that NI is not alone in seeing big reductions in prices during 2023, with similar reductions being experienced by many major European producers.
However, others have started from a higher base, and the NI reported price in May 2023 is among the lowest in Europe, ahead of only Latvia and Lithuania. While some of the difference can be explained by lower butterfat and protein percentages in local milk, NI is also highly exposed to the vagaries of commodity markets, and puts a low percentage of milk into liquid outlets.
Major producers such as Germany, France, Denmark and the Netherlands all reported official prices around the 40p/l mark in May. In Britain, the official price is 37.81p/l, while in the Republic of Ireland it is 36.56p/l. That compares to a NI price of 32.82p/l.
Price drop
Since December 2022, NI prices are down nearly 20p/l, and if we compare this to January 2023, it is a price drop of around 12p/l. On July volumes, that 12p/l cut equates to over £25m in lost income coming to NI farms.
Earlier in the summer local co-ops were optimistic that markets would turn this autumn, but that optimism has waned. On Tuesday, the first GDT event for August saw continued weak demand from China, recording a 4.3% drop in the index price to 918, its lowest level since September 2020.
While it is not a direct comparison, back then base prices where in the region of 27p/l.
Butter fell 0.7%, with skim milk powder down 1.4%. Whole milk powder price plummeted by 8%.
Read more
Strathroy leads on price for June milk
MPI drops to 21-month low point
SHARING OPTIONS