The weather effect is really evident in the March milk league with the average protein level in the milk supplied to most co-ops below the 3.30% threshold. This means that most farmers won’t even get the base price for March. So, on top of selling less milk to the co-op in March, the price for every litre farmers did supply will be less than the stated price per litre.

Almost all of the co-ops supported milk price to some degree in March with weather-related bonuses.

The highest of these was for the west Cork co-ops which offered a 5c/l, excluding VAT, weather-related top-up.

Dairygold has a 1c/l plus VAT early calving bonus for March and gave a 1.9c/l ,excluding VAT, weather-related support.

Arrabawn, Tirlán and Centenary all rowed in with a 2.86c/l excluding VAT weather support. The rest gave a support of between 1c/l and 2c/l with the exception of Kerry Agribusiness, which is usually retrospective in its top-up payments.

Tirlán and North Cork are the only co-ops to pay out the support payments on a solids basis. While this is probably a disadvantage in March 2024 because percentages are low, it’s a much better practice in general rather than just paying it on a flat-per-litre basis because farmers don’t get the value of extra solids.

Division one

The west Cork co-ops have division one of the milk league all to themselves as they’re paying out more than €6/kg MS. The big players – Tirlán, Lakeland and Dairygold – are huddled together in the second division, each with similar combined prices, but big enough differences in the base price when the supports are stripped away.

Given the pressures on farm finances, it will be difficult for the co-op boards to cut prices next month if they are to revert to base price.

Division three is made up of the co-ops paying less than €5.60/kg MS. The year-to-date payments are already showing a difference between suppliers in division one and three, with nearly €3,000 of a difference, only three months into the year.

I was looking back at March last year and the milk prices are pretty much the same now as they were then. In Europe, I see FrieslandCampina in the Netherlands has increased its guaranteed milk price for May to 45.8c/l excluding VAT at 3.4% protein and 4.2% fat.