Glanbia holds milk price for third consecutive month
Following an increase in June, the price received by Glanbia suppliers has remained unchanged.

The board of Glanbia has decided to hold its milk price for September supplies. Glanbia suppliers will continue to receive 30.36c/l (excluding VAT) for milk supplied, at 3.6% butterfat and 3.3% protein.

Glanbia increased its milk price last month but removed a co-op support payment, meaning the price was unchanged. Following an increase in June, the price received by Glanbia suppliers has remained unchanged.

Challenging

Glanbia chair Martin Keane said: “In a year that has been extremely challenging from a weather perspective, September conditions were ideal for milk production. Our milk supply for the month was very strong compared with the same month last year.”

Favourable weather and supplementary feeding has also boosted milk constituents, resulting in an actual average payment for milk this month of 38.35c/l.”

He added that there had been a rapid decline in European butter markets and that the board would continue to monitor developments closely.

On Tuesday, Lakeland Dairies announced it was holding its milk price for September.

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Glanbia sets August milk price

€500,000 in grant funding announced for milk pumps
Minister for Environment Richard Bruton said newer milk pumps could save the average farmer €1,440 in energy bills.

Some €500,000 is to be made available to dairy farmers for the installation of high-efficiency milk pumps. The grant will cover up to 40% of the total technology and installation costs.

Announcing the funding, Minister for Communication, Climate Action and Environment Richard Bruton said the pumps could save the average farmer €1,440 in energy bills. There is also the potential to reduce carbon emissions by 1.6 tonnes annually.

The scheme will be administered through the Sustainable Energy Authority of Ireland (SEAI). The technologies covered under the scheme include variable speed drive (VSD) vacuum pumps and VSD milk pumps.

According to Jim Gannon, SEAI CEO, VSD vacuum pumps can reduce energy consumption by 60% resulting in savings of over 10% on total farm energy costs.

Minister Bruton said: “It is vital that every sector of our economy seek ways to reduce their carbon impact. This is a great opportunity for dairy farmers to become more efficient and save money. It is one of the many practices in a farm where new ways of working can make a significant impact.”

Farmer thoughts

Pat Walton, dairy farmer from Ballingarry Co Tipperary, has installed a new vacuum pump and said the new system was quieter and cheaper to run.

He said: “It is an investment at the start, but over four or five years it will have paid for itself and after that it is saving you a lot of money. It is worth doing for the savings.”

He encouraged other dairy farmers to think about installing a new vacuum pump.

Minister for Agriculture Michael Creed also encouraged farmers to avail of the scheme: “Not only does this dairy equipment make climate sense but also sound economic sense at individual farm level and I urge farmers to engage fully with the scheme.”

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How Irish farmers can harvest the benefits of energy efficiency

Watch: alternative parlour design for large herd

Watch: farmers star in new Kerrygold ads
A marketing campaign targeting 36m customers worldwide is centred on the daily life of three Irish farming families.

Ornua is launching a new global digital marketing campaign to promote the Kerrygold brand based on videos filmed on three Irish farms.

2018 Quality Milk Awards winner Darran McKenna from Co Monaghan; Marguerite and Michael Crowley from west Cork, also a Quality Milk Awards finalist farm; and Brian Cleary from Co Waterford feature along with their families and herds in the series of adverts.

The videos show lights being switched on early in the darkness as dairy farmers go about their work "364.5 days a year", as Brian Cleary puts it.

The campaign emphasises the family tradition on Irish farms, with three generations appearing – including a photograph of Michael Crowley's late father in the parlour.

Michael said that his children were very much part of the farm. "When I ask who wants to be the farmer in the future, I have three hands going up," he said.

The campaign will run in Ireland and in Kerrygold's largest export destinations in Germany, the US and the UK, but also in developing markets for the brand such as Poland, Greece and France, Ornua Foods managing director Róisín Hennerty told the Irish Farmers Journal. The target audience is 36m people.

The videos will appear on social media channels such as YouTube, Instagram and Facebook, but not on TV.

"We're meeting the consumers where they live and play: they are on social media when they are looking for a recipe or on their lunch break," said Hennerty.

Running the campaign on social media will also be more economical – though its budget is confidential.

PPI holds steady as further SMP stocks cleared
The Ornua PPI has remained steady this month while the European Commission has further emptied intervention stocks with all Irish powder now sold.

The Ornua Purchase Price Index (PPI) has remained almost unchanged into the first month of 2019, moving up marginally by 0.1 to 107.6.

This equivalent to a farmgate price of 30.6c/l (excl VAT and assuming 6.5c/l processing costs).

Intervention sale

Meanwhile, the European Commission has further emptied skim milk powder (SMP) intervention stores with 584t sold in the latest tender.

This leaves just half a percent of peak intervention stock in store, with the vast amount of that now in Spain. All Irish SMP intervention stocks have been cleared.

The minimum price secured at the tender also increased up from €1,585/t last month to €1,622/t which reflects a recovering global dairy protein markets.

Conor Mulvihill, director of Dairy Industry Ireland (DII) welcomed the clearance of intervention stock by the EU in an orderly manner.

He said that the almost 400,000t of stock had served as an albatross around the neck of the global dairy protein market.

However, Mulvihill warned that despite the optimism, current intervention disposal prices only equated to a milk equivalent price of under 20c/litre.

This, he said, meant the market had some way to go in terms of delivering proper returns for Irish farmers and industry.

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Over 80,000t of SMP sold from intervention

PPI rebounds in December