IFA Analysis Shows Dramatic Drop in Income on Dairy Farms for 1st Half of ’26
Analysis carried out by IFA shows that dairy farmers took a hit of between €31,000 and nearly €38,000 for the first half of the year compared to 2025, depending on the co-op they supplied.
“These figures are stark and show how big a cashflow impact the fall in milk price is having on dairy farms. What is even more concerning is it represents only half of the year,” said IFA Dairy Chairman Martin McElearney.
Following June milk price announcements, the IFA Dairy Committee reviewed farm revenues for the first half of 2026 from 12 dairy processors for a typical spring calving farm supplying 500,000 litres of milk per year. The results are outlined in the table.
| PROCESSOR | JUN ‘26 MILK PRICE cpl | MILK PAYMENTS Jan – Jun 2026 | 2026 vs 2025 YTD |
| LISAVAIRD | 39.54 | €117,563 | -€31,128 |
| DRINAGH | 39.53 | €117,535 | -€31,128 |
| BARRYROE | 39.44 | €117,402 | -€30,966 |
| BANDON CO-OP | 39.44 | €117,402 | -€30,732 |
| DAIRYGOLD | 39.25 | €113,207 | -€33,115 |
| AURIVO | 39.03 | €113,066 | -€34,882 |
| STRATHROY | 39.04 | €112,617 | -€35,468 |
| TIRLAN | 38.08 | €111,772 | -€34,392 |
| ARRATIPP | 38.12 | €111,410 | -€34,347 |
| KINISLA | 37.11 | €110,226 | -€36,254 |
| LAKELAND DAIRIES | 37.52 | €110,209 | -€33,104 |
| NORTH CORK | 37.28 | €107,985 | -€37,654 |
Note: Analysis is based on actual payments received by farmers for milk supplied in H1 2026. Therefore, any end of year payments relating to sustainability or otherwise are excluded.
Global milk supply continues to outstrip demand which has led to a milk price reduction of 10cpl since last August.
“Combined with higher feed costs due to the lengthy Spring and the recent prolonged dry spell, many dairy farms will be operating below the cost of production in 2026 unless we see a substantial recovery in milk prices,” said Martin McElearney.
The Carbery co-ops continue to lead the table in terms of milk price, paying €4,000 more to its suppliers than its nearest competitors Dairygold and Aurivo. The only private milk purchaser Strathroy sits mid table.
“With half the year gone, we are seeing differences in milk revenues of approximately €10,000 between the top and the bottom of the table. This difference is too great to be ignored.”
“Co-ops should be looking to top the table rather than what we see as the quiet acceptance among processors that the West Cork co-ops own this spot,” he concluded.
