A Positive Trend for Irish Dairy Farmers

Irish dairy farmers are breathing a sigh of relief as milk prices continue their upward climb. Several major dairy co-ops have announced increases in their milk prices for September, offering a much-needed boost to producers after a difficult year marked by challenging weather conditions and rising input costs.

Kerry Dairy Ireland Leads the Charge

Kerry Dairy Ireland, a division of Kerry Group, announced that it will pay farmers 47.75 cents per litre for milk supplied in September. This represents a 2.5-cent increase from the 45.25 cents per litre paid in August. The price is based on the Irish standard of 3.3% protein and 3.6% butterfat, and includes VAT.

A Strong Milk Price

When converted to the European standard of 3.4% protein and 4.2% butterfat, Kerry Dairy Ireland's September price comes out to 52.31 cents per litre. Furthermore, when calculated using the average milk solids supplied in September, the company will pay farmers 58.37 cents per litre, inclusive of bonuses.

Lakeland Dairies Follows Suit

Lakeland Dairies, another major dairy co-op, is also offering its farmers a healthy milk price for September. Their base price stands at 49 cents per litre for milk at 3.6% butterfat and 3.3% protein, including the co-op's 0.5 cents per litre Sustainability Incentive Payment. Suppliers north of the border will receive 40.3 pence per litre, also inclusive of the Sustainability Incentive Payment.

A Positive Outlook

A spokesperson for Lakeland Dairies stated that “the global dairy markets remain largely positive at present, having strengthened throughout quarter three.” They expressed their commitment to supporting farmers, noting their intention to “continue to monitor the markets and will endeavour to support our farmers as best we can.”

Dairygold Adds to the Positive Momentum

The positive milk price trend continued with Dairygold, another major Irish dairy co-op. The company announced a 2.15 cent per litre increase for milk supplied in September, excluding VAT. This brings the price to 45.8 cents per litre, excluding VAT but including sustainability and quality bonuses.

Strong Market Returns

Dairygold attributed the price increase to strong dairy market returns, citing improved market prices, particularly for butter and cheese. The company acknowledged that butter prices have recently fallen from their unprecedented highs, but global supply remains constrained.

A Ray of Hope for Irish Dairy Farmers

These positive developments offer much-needed encouragement to Irish dairy farmers, who have faced a challenging year with rising input costs and fluctuating market conditions. The increases in milk prices signal a positive trend and offer a glimmer of hope for the future of the Irish dairy industry.

A Look Ahead

While the dairy industry remains optimistic, the future holds both opportunities and challenges. The ongoing global dairy market fluctuations, coupled with the potential for geopolitical instability, create uncertainty for farmers. However, the recent increase in milk prices highlights the resilience of the Irish dairy industry and the continued commitment of co-ops to supporting their farmers.

It remains to be seen how long this upward trend will continue, but for now, Irish dairy farmers can breathe a sigh of relief and look forward to a brighter future.