January 2025 has seen a number of dairy farmers switching processors with an estimated 20m litres on the move at the start of the year.
Eleven farmers are reported to have changed processors, seven of whom are understood to have left Lakeland Dairies, with the remaining four departing Dale Farm.
Tirlán has acquired just short of 5m litres of new milk from farmers previously supplying Dale Farm.
However, Dale Farm has offset this loss in supply by obtaining a similar volume from Lakeland Dairies at the start of January.
Strathroy procured the biggest share of new milk after signing up two large suppliers producing a combined volume in excess of 8m litres annually.
Leprino Foods has also secured one new supplier, understood to be producing 2m litres on an annual basis.
While the combined volume of milk changing hands in January represents less than 0.8% of the NI milk pool, it is significant to see the number of processors taking on suppliers from competitors.
With all processors eager to grow milk supply, more farmers could switch processors later this year, especially once new UK legislation under the Fair Dealing Obligations (Milk) Regulations applies from 9 July. Under the legislation, a processor cannot “alter the pricing method or price per unit of milk” when a producer puts in a notice to leave.
SHARING OPTIONS: