The expansion in Ireland’s milk pool has stalled for the first time since the abolition of quotas in 2015.

This is despite the record high milk prices, topping 50c/l including bonuses, being paid by dairies.

Milk supplies up to the end of March are back 2-3% compared to 2021, although output was forecast to grow by around 3% this year.

Most of the main dairy processors, with the exception of Lakeland Dairies, report that milk supplies are back or static so far this year.

While Lakeland Dairies has experienced a 5% lift in milk volumes up to the end of March, Kerry Group stated that supplies were back 5.5% for the same period.

A spokesperson for Glanbia said March milk supply was running 3% behind for the first three months of 2021. However, supplies have improved in recent weeks, and are now around 1% below last year’s levels on a week-by-week basis.

Dairygold indicated that supplies up to the end of March were down around 2% on last year. Deliveries to Arrabawn were up 1% for the period to March 31.

The fall-off in milk output has been blamed on a combination of factors. These include high fertiliser and feed costs, as well as slow grass growth this spring.

In addition, more cows appear to have been culled this spring on the back of strong factory prices and fears that fodder stocks could be tight and expensive this winter.

“There has been a definite thinning of herds,” one industry official said.

“It won’t be a big milk year, despite processors paying over 50c/l.

“If milk output is not ahead at peak then we’re unlikely to push supplies in the back end given the current high feed costs,” he added.

In 2021 Irish farmers produced around 8.75bn litres of milk.