Over 55% of milk in retail outlets is now sold as “own label”, according to the annual report from the National Milk Agency (NMA). Own label milk in two-litre packs sold at an average discount of 25% in comparison with processors’ brands.
The NMA is the body charged with ensuring a year-round supply of fresh milk for the liquid milk market. That market has an estimated retail value of €531m – with consumption in 2013 up 0.4% to 565m litres.
Eight per cent of the milk produced by the Republic of Ireland’s 17,985 dairy farmers was consumed on the liquid or fresh drinking milk market last year. This milk is produced by 1,883 producers, who account for 10.4% of active dairy farmers. These farmers also produce manufacturing milk and, due to their above average scale, produce 15% of Ireland’s milk supply.
Northern Ireland continues to be a major force in the Republic of Ireland’s liquid milk market, with imports of fresh milk from the North accounting for 146m litres, or 26% of the market (figure 4). The NMA estimates that 61% of this milk is imported in consumer packs, while the balance is fresh milk imported for packaging for the liquid market.
The launch of the National Dairy Council’s “farmed and processed in the Republic of Ireland” initiative is regarded as having stemmed the growth of NI milk, which has been static at 26% market share for the past three years, after strong growth from zero in 1996.
Northern Ireland is particularly strong in the catering/food service trade, which accounts for 11% of the liquid milk market. Doorstep deliveries remained stable in 2013, at 10% of the market.
Due to the effective absence of the milk quota in Northern Ireland, the region’s milk output has grown by 53% in the last 20 years.
The average NI farm now produces 748,000 litres, more than double the average in the Republic (301,000). Furthermore, NI’s 2bn litres are produced on an all-year-round basis – the supply in the peak month is only 1.4 times the supply in the lowest month.
This is a flatter supply curve than the Republic’s liquid milk suppliers (peak to trough of 1.9).
Year-round supply incurs a higher cost for the farmer. However, in Northern Ireland the average milk price in 2013 was 31.32p/litre, 21% higher than in the previous year. Using the prevailing exchange rate at the time of the NMA report preparation, the NI price was 3% lower than the average price in the Republic.
The NMA describes the industry structure as “highly concentrated”, with two processors – Glanbia and Aurivo – accounting for 64% of active, registered producers and 68% of registered milk suppliers. There are 18 plants licenced to heat-treat milk for human consumption.
Other interesting statistics contained in the NMA annual report include:
The annual average price paid for milk for liquid consumption increased by 5 c/l in 2013 to a record 39c/litre, including VAT. According to the NMA, the differential between manufacturing and liquid price fell to 0.80c/litre in 2013, compared with 2.95c/litre in 2012.NMA chairman Denis Murphy warns that this “record low” differential “is a disincentive for registered producers to maintain all-year-round milk supplies”.Demand for low-fat and skimmed milk continues to grow and now accounts for 40% of total fresh milk sales (figure 2).An estimated 75% of sales of fresh milk was for two-litre or greater-sized packs. Based on this, the NMA estimates that the average retail price per litre in 2013 was 94c/litre, an increase of 1c/litre or 1% on 2012.Per capita consumption of fresh milk in the state, at 0.34 litres per day, is the second highest in the EU and almost double the EU average.
Over 55% of milk in retail outlets is now sold as “own label”, according to the annual report from the National Milk Agency (NMA). Own label milk in two-litre packs sold at an average discount of 25% in comparison with processors’ brands.
The NMA is the body charged with ensuring a year-round supply of fresh milk for the liquid milk market. That market has an estimated retail value of €531m – with consumption in 2013 up 0.4% to 565m litres.
Eight per cent of the milk produced by the Republic of Ireland’s 17,985 dairy farmers was consumed on the liquid or fresh drinking milk market last year. This milk is produced by 1,883 producers, who account for 10.4% of active dairy farmers. These farmers also produce manufacturing milk and, due to their above average scale, produce 15% of Ireland’s milk supply.
Northern Ireland continues to be a major force in the Republic of Ireland’s liquid milk market, with imports of fresh milk from the North accounting for 146m litres, or 26% of the market (figure 4). The NMA estimates that 61% of this milk is imported in consumer packs, while the balance is fresh milk imported for packaging for the liquid market.
The launch of the National Dairy Council’s “farmed and processed in the Republic of Ireland” initiative is regarded as having stemmed the growth of NI milk, which has been static at 26% market share for the past three years, after strong growth from zero in 1996.
Northern Ireland is particularly strong in the catering/food service trade, which accounts for 11% of the liquid milk market. Doorstep deliveries remained stable in 2013, at 10% of the market.
Due to the effective absence of the milk quota in Northern Ireland, the region’s milk output has grown by 53% in the last 20 years.
The average NI farm now produces 748,000 litres, more than double the average in the Republic (301,000). Furthermore, NI’s 2bn litres are produced on an all-year-round basis – the supply in the peak month is only 1.4 times the supply in the lowest month.
This is a flatter supply curve than the Republic’s liquid milk suppliers (peak to trough of 1.9).
Year-round supply incurs a higher cost for the farmer. However, in Northern Ireland the average milk price in 2013 was 31.32p/litre, 21% higher than in the previous year. Using the prevailing exchange rate at the time of the NMA report preparation, the NI price was 3% lower than the average price in the Republic.
The NMA describes the industry structure as “highly concentrated”, with two processors – Glanbia and Aurivo – accounting for 64% of active, registered producers and 68% of registered milk suppliers. There are 18 plants licenced to heat-treat milk for human consumption.
Other interesting statistics contained in the NMA annual report include:
The annual average price paid for milk for liquid consumption increased by 5 c/l in 2013 to a record 39c/litre, including VAT. According to the NMA, the differential between manufacturing and liquid price fell to 0.80c/litre in 2013, compared with 2.95c/litre in 2012.NMA chairman Denis Murphy warns that this “record low” differential “is a disincentive for registered producers to maintain all-year-round milk supplies”.Demand for low-fat and skimmed milk continues to grow and now accounts for 40% of total fresh milk sales (figure 2).An estimated 75% of sales of fresh milk was for two-litre or greater-sized packs. Based on this, the NMA estimates that the average retail price per litre in 2013 was 94c/litre, an increase of 1c/litre or 1% on 2012.Per capita consumption of fresh milk in the state, at 0.34 litres per day, is the second highest in the EU and almost double the EU average. 
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