Barryroe co-op in west Cork paid Ireland’s top milk price in 2013, retaining their top position from the previous year. The Irish Farmers Journal KPMG milk price review – published on pages 16-17 of this week’s edition – shows a clean sweep by the four west Cork co-ops.

All processors returned a good price in 2013, with a weighted average price of 37.71 cent per litre after the deduction of collection charges and levies. This was 22% ahead of the average price in 2012.

The annual milk price review determined the price paid for 4.7bn litres of manufacturing milk processed in 2013 – the vast majority of milk in the sector. By definition, it excludes all milk “purchased for and/or used in the liquid milk market”.

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All manufacturing milk processors in the Republic of Ireland – apart from North Cork co-op – are now participating in the voluntary scheme in which processors allow KPMG access to their milk payment information.

IFA National Dairy Committee chairman Sean O’Leary congratulated the co-ops which voluntarily participated in the milk price review for their contribution to improving milk price transparency.

“With top prices exceeding 39c/l, 2013 will be remembered as a good dairy year. However, the KPMG/IFJ audit is by nature historical, and suppliers to the co-ops performing least well in the audit will legitimately expect their co-ops to improve their showing in 2014 and future years,” O’Leary said.

“In the post-quota era, farmers will need to be able to assess the relative performance of their co-operatives far more readily than they can do now. This will be particularly important for farmers who are making financial contributions to the development plans of their co-op through sharing up or other means,” he said.

“I believe the audit will remain a critical element in allowing them make such an independent assessment, as the price famers receive for their milk is the single most important determinant of their income,” he concluded.

Disappointing drop

Meanwhile, a 4.9% drop in the Global dairy Trade index at this week’s auction was described as “disappointing” by IFA National Dairy committee chairman Sean O’Leary. However, he pointed out that European dairy prices had continued firming for over five weeks at this stage.

He said only two European operators trade through the GDT platform, and reminded all that well over 80% of Ireland’s dairy exports are sold on EU markets, including the UK. O’Leary said June EU market returns could and should sustain current milk prices.

“The GDT 4.9% price decrease reflects the volatility of quantities traded, with a 10,000t hike in the amount of powder traded through the platform relative to the previous auction, mostly made up of NZ WMP,” O’Leary said.

Average EU commodity prices reported to the EU Milk Market Observatory for 22nd June would return a gross 42c/l before processing costs for an Irish product mix,” he said.