Lakeland Dairies, Tirlán, Kerry Group and Dairgold have all announced that they will pay November milk the same price as last month. However, processors warn that market conditions will “change significantly” in 2023.
In the Republic of Ireland, Lakeland Dairies has maintained its November milk price of 58.85 c/l, which includes an additional input support payment of 1.5 c/l for all suppliers, including fixed-price milk contracts, the processor announced this week.
In ROI, all fixed milk price contracts receive an additional payment of 8c/L plus the additional payment of 1.5c/L Input Support Payment.
In Northern Ireland, Lakeland Dairies has retained the price of 47.5p/litre, which includes an input support payment of 1.5p/litre.
In NI all fixed price milk contracts receive an additional payment of 7p/L plus the additional input support payment of 1.5p/L.
Milk suppliers also receive the corresponding off-season payments of 3c/L in ROI and 3p/L in NI for November.
The processor will also make an additional payment in January 2023 for each liter of milk delivered in 2022 of 0.6 cents/L plus VAT in ROI and 0.5 cents/L in NI.
Looking ahead to 2023, market conditions are changing significantly, according to a Lakeland spokesman.
“Milk supply has increased in major milk producing regions around the world and global milk markets have weakened significantly as a result.
“Higher inflation and interest rate hikes have reduced consumer spending power and sentiment remains questionable.”
According to Tirlán chairman John Murphy, market yields are below the current farm-gate milk price, but the board has decided to keep the milk price for November at the current level, he said.
“Dairy supply has increased in certain regions, but high farm input costs and environmental factors will dampen growth levels.”
It comes as Tirlán announced this week that it will pay 58.08 c/l for November milk – unchanged from the October price.
The price consists of a base milk price of 51.08c/l, the Agri-Input Support Payment, which remains at 6.5c/l (including the amounts in fixed milk price systems) and the payment for sustainability actions of 0.5c /l paid monthly on all milk delivered in 2022.
The total price of corn milk in November is 63 c/l.
Seasonal payments apply during the winter months of December, January and February. A payment of the seasonality bonus of 4c/L will be paid on all non-contracted milk quantities delivered in December and January that meet the quality criteria, the supplier announced.
The Kerry Group is also holding last month’s base price of 56c/l for November milk, it announced.
Based on Kerry’s average milk solids for November, the milk price return including VAT and premiums is 71.84 c/l.
The Kerry Group also pays 1 cent/L for milk with 3.30 percent protein and 3.60 percent butterfat on November amounts.
Dairygold is again paying its suppliers 57.5c/L this month, including bonuses and VAT.
This milk price corresponds to an average farm-gate milk price of 75.5 c/l in November, based on average milk solids in November, according to the processor.
The quoted milk price for November, based on EU standard ingredients of 3.4 percent protein and 4.2 percent butterfat, is 62.7 c/L.
“While dairy markets have softened in recent weeks due to an increase in global milk supply and a fall in demand due to high prices, Dairygold’s board has agreed to maintain the current milk price for November milk supply,” said a Dairygold spokesman.
https://www.independent.ie/business/farming/dairy/milk-prices/milk-suppliers-maintain-last-months-price-but-warn-of-significant-change-to-come-in-2023-42224202.html Milk suppliers keep last month’s price but warn of “significant changes” in 2023