Dairy Council Report November 2021

Farm Gate Prices – September 2021

Processor	PROTEIN €/kg	c/L protein value	FAT €/kg	c/L fat value	Volume Charge  (c/L)	A+B-C (c/L)	Bonus (c/L)	VAT excl. (c/L)	VAT (c/L)	VAT incl. (c/L)
DAIRYGOLD	6.78	23.04	4.14	15.36	4.00	34.40	0.65	35.05	1.96	37.01
KERRY	6.49	22.06	4.33	16.04	4.00	34.10	0.5	34.60	1.94	36.54
LAKELAND	7.38	25.09	3.75	13.94	3.50	35.53		35.53	1.99	37.51
GLANBIA	7.29	24.77	3.64	13.50	4.00	34.27	0.398	34.67	1.94	36.61
AURIVO	6.69	22.74	4.29	15.90	3.81	34.83		34.83	1.95	36.78
BARRYROE	6.59	22.40	4.39	16.29	4.00	34.70	0.5	35.20	1.97	37.17
ARRABAWN	7.31	24.83	3.61	13.37	3.35	34.85	0.2	35.05	1.96	37.01
DRINAGH	6.55	22.25	4.36	16.18	3.55	34.89	0.5	35.39	1.98	37.37
TIPPERARYCO-OP	6.54	22.22	4.36	16.16	4.00	34.38	0.25	34.63	1.94	36.57
LISAVAIRD	6.55	22.25	4.36	16.18	3.70	34.74	0.5	35.24	1.97	37.21
NORTH CORK	6.71	22.82	4.03	14.93	4.00	33.75	1.1	34.85	1.95	36.80

Ornua PPI – July 2021

Below are the last four months prices, including VAT. Since the publication of the Ornua Value Payment in July 2020, we can see that the value of this payment has doubled in the period from July to October. Last year the value of the payment was €18.3m while this year the payment was worth €37.7m. Yet evident from the milk price table above, this premium is not reflected in the farm gate price farmers are receiving. 

	Jul	Aug	Sep	Oct
Ornua PPI	118.6	118.1	121.8	125.6
Ornua PPI (c/L)	35.5	35.3	36.6	38
Ornua Value Payment	€10.05m	€10.11m	€9.66m	€7.95m
Adjusted PPI (c/L) (VAT incl)	38.72	38.71	39.86	41.68

Milk Supply – July 2021

Domestic milk intake by creameries and pasteurisers was estimated at 779.3 million litres for September 2021. This represents an increase of 7.4% over September 2020. 

The Protein content decreased from 3.78 % in September 2020 to 3.74% in September 2021.  

During the period January to September 2021, domestic intake was estimated at 7,387 million litres, an increase of 6.4% when compared to the corresponding period for 2020. 

Latest Commodity Prices

GDT 2^nd November 

	Price	Trend
GDT	€3638	+4.3%
Butter	€4627	+4.7%
Cheddar Cheese	€4374	+14.1%
SMP	€3136	+6.6%

 EU Spot Commodity Prices 26^th October

Butter	Price/tonne	Trend
German	€5300	9.3%
French	€5000	8.7%
Dutch	€5220	6.3%

Whey	Price/tonne	Trend
German	€1040	2%
French	€990	0%
Dutch	€1040	0%

SMP	Price/tonne	Trend
German	€3025	2.9%
French	€2965	5.5%
Dutch	€3050	4.1%

European Futures Market 

EEX	Period	Price/tonne	Trend
Butter	Nov  21 – Jun 22	€5182	+3.7%
SMP	Nov  21 – Jun 22	€2986	-0.8%
Whey	Nov  21 – Jun 22	€1075	+2.8%

Nitrates Action Programme 

• Since the closure of the second consultation process in September IFA have been in continuous negotiations with DAFM to negotiate the current proposals. 
• All proposals must be agreed by the Nitrates Expert Group, both the Minister of Agriculture and the Minister of Housing and then the National Parks and Wildlife services before they can be presented to the Commission at the next nitrates meeting scheduled for the 15^th December. 
• Once this is completed, then DAFM can request permission for the nitrates derogation from the Commission. 

Labour Permits 

• In October IFA successfully lobbied Minister English at the Department of Enterprise, Trade and Employment for work permits for dairy farm assistants. 
• 100 permits have now been offered for this role for people who wish to work in Ireland from outside the EU. 
• While the initial ask was for 300 permits, we welcome the introduction of 100 permits which can be built upon to deliver more consistent issuing of permits for this role.