Low solids take the shine off May milk payments

The May milk payments are usually the biggest payments of the year as cows are at peak production.

While most processors increased milk price for May 2024, it didn’t have the same satisfaction factor among dairy farmers as it would normally have.

Average fat and protein percentage is low compared to normal and that’s driving down the milk price received because even though volumes are down, so too are constituents, meaning the amount of milk solids being sold is back considerably on other years. Putting it another way, the same milk price in a different year would have swelled the milk payments.

The milk league is ranked on the price paid per kilo of milk solids at national average values for fat and protein.

Top of the league for this month is Arrabawn which, although has kept its net milk price the same, has decided to give all of its suppliers who are enrolled in the sustainability programme the full payment of 0.5c/l for May.

Aurivo makes its way into division one for May, having increased milk price by 1c/l.

North Cork retains its division one spot as it continues to pay out the reserve fund built up in previous years.

Lakeland Dairies kept its price the same for May but it still holds the division one slot.

The four west Cork co-ops are joined with Boherbue, Tirlán and Centenary Thurles in division two. Each of these co-ops increased their price by 0.5c/l for May which pushes them above the €5.60/kg MS threshold for entry into division two for May.

Dairygold just misses this and retains its spot in division three for May where it is joined this month by Kerry Agribusiness and Tipperary Co-op which continues to languish at the bottom of the league at considerable opportunity cost to suppliers.

In Table 1, we re-print the summary of the 2023 cumulative payments based on the 2023 Irish Farmers Journal monthly milk leagues.

Two additional payments to Aurivo suppliers were not included when the table was published last month so happy to correct the record here. The change pushes Aurivo ahead of Tipperary Co-op and third from the bottom.