Dairygold milk supply will end the year 2.7% ahead of 2024, the co-op has forecasted.

In a letter to shareholders, Dairygold stated that milk supplies were 4.7% ahead of last year up to the middle of August.

However, the co-op anticipates that supplies will ease back in the coming months.

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“Weather always has such a significant impact on our business and the very favourable spring weather, along with improved milk prices, have boosted milk production, with our 2025 year-to-date milk supply to 17 August at c1.018 billion litres, up 4.7% or 45.5 million litres versus last year,” the Dairygold letter stated.

“This growth has been somewhat tempered by later calving and a 3% decrease in cow numbers, but, overall, we expect 2025 milk supply to be c1.420 billion litres – up approximately 2.7% versus 2024,” the co-op contends.

A recent survey of milk processors by the Irish Farmers Journal found that most dairy businesses are running 4-6% ahead of 2024.

Industry sources predicted that if supplies remained on track through the back end of the year, then dairies could handle close to 8.8 billion litres in 2025.

The highest volume of milk processed by the Irish creameries was 8.83 billion litres in 2022.

Dairygold pointed out that it paid 8c/l more for milk for July than was paid in 2024. Milk payments by the co-op for the year to the end of July were €105m higher than for the same period in 2024.