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There was a 5% drop in price for liquid milk producers last year compared with 2017, according to the 2018 annual report of the National Milk Agency (NMA).
For registered milk producers, the annual average milk price for contracted milk supplies was 34.34c/l (excluding VAT) - a decrease of 1.7c/l (excluding VAT) on 2017.
Registered producers are a specialist dedicated group in Ireland’s milk production structure, who are contracted to supply milk for processing for liquid consumption on a year-round basis or for the winter months only. They represent 10% of all milk producers.
Fewer liquid milk contract farmers
The total number of registered producers with contracts decreased in 2018 by 3% to 1,749 producers.
This was a decrease of 59 contracts year on year.
Fresh milk
The fresh milk market was valued at €521m in 2018.
Last year, national consumption of fresh liquid milk was 579m litres, a decrease of 2m litres on 2017.
Irish consumers have the highest per capita consumption of fresh drinking milk in the world, with an annual consumption of 121l per person, according to the NMA.
Sales of whole milk represented 61% of fresh milk sales, while sales of low-fat and skimmed milk represented 39% of sales, it said.
Imports from Northern Ireland
In 2018, bulk milk imports from Northern Ireland for processing in the Republic of Ireland increased by 1% to 811m litres, of which 92% were processed into manufactured dairy products and 8% processed for liquid consumption.
This was the second-highest volume of bulk milk imports on record and was equivalent to 11% of domestic annual milk supplies and to 35% of Northern Ireland’s annual milk supplies in 2018, the annual report reads.
Liquid vs manufacturing milk
Last year, domestic milk supplies to creameries and pasteurisers stood at 7.5bn litres, an increase of 322m litres on 2017.
The number of milk producers in Ireland in 2018 is estimated at 17,000, with the average annual milk supplies per producer standing at 446,000l.
Some 94% of domestic milk supplies were utilised in the manufacture of dairy products, which were mainly for export, while 6% of supplies were processed for liquid consumption on the domestic market.
Finance
Total income at the NMA in 2018 was €506,526. This was down year on year by €8,639 as a result of a drop in income from milk levies of €7,611 and a drop in interest income of €442.
Operating costs at the agency were down by €6,320 to €535,599, while personnel and staff-related costs, representing 68% of total costs, amounted to €366,420. This was an increase of €8,857 on 2017.
The excess of costs of €535,599 over income of €506,526 resulted in an operating deficit for the year of €29,073 compared with €26,754 in 2017.
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