Compared with some European countries, we drink a lot of fresh, whole milk. Consumption in Ireland is 0.34 litres per person per day, the third highest in Europe.

The continued confidence and commitment of registered milk producers in supplying quality milk for the domestic fresh milk market on a year-round supply basis is contingent on the availability of adequate price incentives relative to the prices paid for seasonal milk supplies for manufacturing. If you are milking all year round, a lot of variable costs associated with producing milk are much higher, eg feed and labour.

On the domestic fresh milk market, while consumption increased marginally (2%), the National Milk Agency (NMA) reports that the average retail milk price fell by an estimated 2c/litre, or 2% in 2014. The annual average producer price of milk for processing for liquid consumption, which was the second highest price on record, fell to just over 38c/litre, excluding vat, or by almost 1c/litre.

Prices for registered milk supplies are now predominantly based on processors’ monthly compositional prices for supplies of milk for manufacturing, which are mainly derived from export market returns, with the addition of incentives for contracted supplies during the winter.

The Irish fresh milk market is the largest consumer market for milk and milk products in the State with an estimated retail value of €530m in 2014.

Irish consumers’ preference for low-fat and skimmed milks continued to grow and, last year, these products constituted 41% of total fresh milk sales.

Imports of fresh milk from Northern Ireland, in consumer packs and as bulk milk for processing for liquid consumption in the State, amounted to 145m litres and continued to represent one in every four litres of fresh milk, which is consumed in the State.

Liquid milk farmers

In the 2013/14 milk year, 1,867 milk supply contracts were registered with the agency in respect of 475m litres of milk for processing for liquid consumption.

Supplies for processing for liquid consumption amounted to 475m litres, or 58% of total supplies by liquid milk producers, while supplies for processing into manufactured dairy products amounted to 339m litres or 42% of total supplies.

Last year, bulk milk imports into the State for processing by creameries and pasteurisers were the third highest on record and amounted to 511m litres, representing an increase of 100m litres or 24% on 2013. Bulk milk imports were mainly crossborder movements of milk from Northern Ireland and were equivalent to 9% of domestic supplies and to 23% of Northern Ireland’s annual milk supplies

Bulk milk imports of 459m litres for processing into manufactured dairy products in the State represented 90% of total imports. Bulk milk imports of 52m litres, for processing for liquid consumption in the State, represented 10% of imports and were a reduction of five million litres, or 9% on the previous year.

Imports of fresh milk in consumer packs, were estimated at 93m litres, an increase of four million litres or 4% on the previous year.

Total milk imports for liquid consumption in consumer packs and in bulk for processing for liquid consumption in the State amounted to 145m litres, a decrease of one million litres, or 1%, on the import volumes in the previous year.

Supermarkets

Retailers are the main distribution channel for fresh milk, distributing 79% of all fresh milk. According to industry sources, the catering channel remained at 11%, while the doorstep channel remained at close to 10%.

The three largest multiple groupings had a 78% share of the Irish grocery market in 2014.

Low fat

The fresh milk market is the largest consumer market for milk and milk products in the State with an estimated retail value of €530m in 2014.

National consumption of fresh liquid milk last year was 576m litres, an increase of 11m litres, or 2% on consumption in 2013.

Last year, sales of whole milk represented 59% of fresh milk sales, while sales of low-fat and skimmed milk represented 41% of sales, which compared with 60% and 40% respectively in 2013.

The national average retail prices of low-fat milk in one-litre packs and of whole milk in two-litre packs in 2014, as reported by the CSO, were 105c/l and 175c/2l respectively, decreases of 1c/l and 5c/2l from 2013.

An estimated 75% of sales of fresh milk were sold in two-litre or larger-sized packs, while an estimated 25% of sales were sold in one-litre or smaller packs.

Read more from our Liquid Milk supplement here.