An analysis of 2023 milk prices conducted by the IFA has found a €14,380 milk price gap between the highest and lowest paying co-ops before sustainability bonuses are taken into account.
Bandon topped the 2023 milk price rankings at 42.63c/l excluding VAT, closely followed by Drinagh at 42.62c/l and Barryroe at 42.53c/l.
These prices left suppliers’ revenue from the year’s milk cheques at a respective €213,123, €213,079 and €212,684 for these co-ops.
At the bottom of the milk price analysis came Lakeland Dairies at 39.89c/l ex VAT, Tirlán came in marginally stronger at 39.90c/l to leave Aurivo the third lowest paying co-op listed in the IFA analysis at 40.25c/l.
The yearly milk revenue figures were based off a spring calving herd of 87 cows producing 500,000l per year, with the Moorepark milk supply curve and average monthly solids from the national milk pool were used to determine fat and protein.
The 2023 milk price rankings in the IFA analysis are as follows (prices listed as ex VAT):
Bandon at 42.63c/lDrinagh at 42.62c/lBarryroe at 42.53c/lStrathroy Dairies at 42.50c/lLisavaird at 42.47c/lArrabawn at 41.65c/lKerry at 41.23c/lNorth Cork Co-Op at 40.52c/lTipperary Co-Op at 40.57c/lDairygold at 40.33c/lAurivo at 40.25c/lTirlán at 39.90c/lLakeland Dairies at 39.89c/lThe average yearly milk prices listed above includes two retrospective payments from Kerry on January to March supplies and July to December supplies, as well as a 13th payment from Dairygold and Aurivo.
The IFA analysis did not factor in sustainability bonuses which require actions to be taken on farms, nor did it account for other bonuses requiring trade with the co-op, such as input support top-ups.
Asking questions of co-ops
The association’s dairy chair Stephen Arthur stated that the figures show that some large co-ops are not delivering for the farmers supplying them.
“When we distill down all the information and peel back the layers, we can see that there is a difference of over €14,000 in revenue between the best and worst paying milk processors,” Arthur said.
“Farmers are entitled to ask how some processors, particularly the smaller co-ops, are able to pay a better milk price.”
The dairy chair added that sustainability bonuses with terms and conditions do equate to a simple top-up on milk prices.
“Sustainability comes at a tangible cost. Farmers can no longer afford to carry this burden,” he continued.
“The marketplace has to deliver additional margin to cover this cost, all of which has to make its way to the farmer’s base milk price.”
An analysis of 2023 milk prices conducted by the IFA has found a €14,380 milk price gap between the highest and lowest paying co-ops before sustainability bonuses are taken into account.
Bandon topped the 2023 milk price rankings at 42.63c/l excluding VAT, closely followed by Drinagh at 42.62c/l and Barryroe at 42.53c/l.
These prices left suppliers’ revenue from the year’s milk cheques at a respective €213,123, €213,079 and €212,684 for these co-ops.
At the bottom of the milk price analysis came Lakeland Dairies at 39.89c/l ex VAT, Tirlán came in marginally stronger at 39.90c/l to leave Aurivo the third lowest paying co-op listed in the IFA analysis at 40.25c/l.
The yearly milk revenue figures were based off a spring calving herd of 87 cows producing 500,000l per year, with the Moorepark milk supply curve and average monthly solids from the national milk pool were used to determine fat and protein.
The 2023 milk price rankings in the IFA analysis are as follows (prices listed as ex VAT):
Bandon at 42.63c/lDrinagh at 42.62c/lBarryroe at 42.53c/lStrathroy Dairies at 42.50c/lLisavaird at 42.47c/lArrabawn at 41.65c/lKerry at 41.23c/lNorth Cork Co-Op at 40.52c/lTipperary Co-Op at 40.57c/lDairygold at 40.33c/lAurivo at 40.25c/lTirlán at 39.90c/lLakeland Dairies at 39.89c/lThe average yearly milk prices listed above includes two retrospective payments from Kerry on January to March supplies and July to December supplies, as well as a 13th payment from Dairygold and Aurivo.
The IFA analysis did not factor in sustainability bonuses which require actions to be taken on farms, nor did it account for other bonuses requiring trade with the co-op, such as input support top-ups.
Asking questions of co-ops
The association’s dairy chair Stephen Arthur stated that the figures show that some large co-ops are not delivering for the farmers supplying them.
“When we distill down all the information and peel back the layers, we can see that there is a difference of over €14,000 in revenue between the best and worst paying milk processors,” Arthur said.
“Farmers are entitled to ask how some processors, particularly the smaller co-ops, are able to pay a better milk price.”
The dairy chair added that sustainability bonuses with terms and conditions do equate to a simple top-up on milk prices.
“Sustainability comes at a tangible cost. Farmers can no longer afford to carry this burden,” he continued.
“The marketplace has to deliver additional margin to cover this cost, all of which has to make its way to the farmer’s base milk price.”
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