Milk supply for March was up considerably on expectations as better weather for grazing and more mature yields from herds drove milk supply up. The first two weeks of April have seen a slight tapering off in this trend.

Our survey results show milk supply to the end of March compared to the same month last year was up by between 10% and 18% for the big milk processors compared to the same month in 2020.

The CSO reported March 2020 figures at 723m litres, a 2% lift on the 2019 figures.

Our tally results this week suggest the March 2021 monthly supply will have gone up another 70m to 80m litres, meaning total March supply could be very close to the 800m-litre mark.

Glanbia estimates suggest March milk supply was up by approximately 10%. Dairygold estimates that supply was up by 13% and Lakeland Dairies was up by 18%. Arrabawn estimates that supply was up by almost 12%. Aurivo was up 12%, while Kerry was up 14% for March.

The west Cork co-ops are up by between 14% and 15%. Overall EU milk supplies are down 0.7% for January to February 2021. Two big players, France and Germany, were down 3.1% and 1.7%, respectively.

Bord Bia

Speaking about supply on a Bord Bia dairy markets insight webinar on Wednesday morning, Kevin Bellamy, head of the global dairy sector with Rabobank, said: “The upward pressure on prices will continue as there is mediocre supply growth in key milk regions.”

He highlighted the huge US stimulus packages and China’s demand for fresh milk which was boosting Chinese imports as key factors.

His positivity on continuing fat and protein price increases were tempered by any potential policy changes and Government intervention that may change supply in regions.

Many of the speakers highlighted the need for further proof points on sustainability. Lu Ann Williams of Innova Market Insights suggested the number one trend in dairy markets is that “transparency triumphs”, so she said a trusted market and product plays into the sustainability discussion that started in 2008.

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Kerry lifts March milk price