A gap of €16,896 has been identified between the highest and lowest paying processors in 2020, milk price analysis completed by the IFA dairy committee has shown.
This is up from €16,481 and shows significant differences between the milk price paid by 11 milk processors across the country.
The analysis is based on the revenue generated in 2019 and 2020 by a spring-calving herd supplying 500,000l a year to its milk processor. It does not include any trading bonuses, fixed price schemes or forward contracts.
The analysis, completed by the committee and senior dairy policy executive Aine O’Connell, is based on milk statements supplied by farmers to the dairy committee.
It ranks processors in order of the annual income that would be generated and is adjusted for milk constituents.
Committee chair Stephen Arthur said the purpose of this analysis is to allow farmers to compare prices paid by milk processors on a like-for-like basis.
“Dairy farmers have been working hard to improve their milk constituents over the years. This can give the impression that milk price has improved, when in reality it’s the milk quality that has improved.
“This has masked the fact milk price is effectively the same over the past 30 years,” he said.
“We believe the analysis will provide more price transparency, and we plan to publish it on an annual basis.”
To see where your processor finished in the table, click here.