Liquid Milk Council Report February 2024

1. Policy proposals for approval by National Council 

N/A 

2. Market Report (if relevant) 

The global dairy market is generally stable albeit we have seen weaker quotes on the futures     market in the past 2 weeks. Global milk supply is expected to remain relatively flat in 2024 which will underpin prices. However, it is difficult to determine milk price outlook beyond Q1 given weak Chinese demand and political unrest in the Middle East which could dampen demand and/or cause supply chain issues.  

December Farm Gate prices at 3.3% protein and 3.6% fat.  

Processor	PROTEIN €/kg	c/L protein value	FAT €/kg	c/L fat value	VOLUME CHARGE	A+B-C	Bonus	VAT exclusive	VAT	VAT inclusive
TIRLAN	7.21	24.51	3.61	13.37	4.00	33.88	4.29	38.17	1.91	40.07
ARRABAWN	7.35	24.96	3.63	13.44	3.35	35.05	2.11	37.16	1.78	38.94
DRINAGH	6.71	22.81	4.47	16.59	3.55	35.85	0.88	36.73	1.84	38.56
BANDON CO-OP	6.77	23.02	4.52	16.74	4.00	35.76	0.88	36.64	1.83	38.47
LISAVAIRD	6.71	22.81	4.47	16.59	3.70	35.70	0.88	36.58	1.83	38.41
BARRYROE	6.77	22.99	4.51	16.72	4.00	35.71	0.88	36.59	1.76	38.35
TIPPERARY CO-OP	6.33	21.51	4.22	15.64	4.00	33.15	3.25	36.40	1.75	38.14
STRATHROY	7.44	25.27	3.90	14.44	4.00	35.71	0.15	35.86	1.79	37.66
LAKELAND	7.36	25.00	3.75	13.89	3.50	35.38	0.00	35.38	1.77	37.15
AURIVO	6.77	23.02	4.35	16.12	3.81	35.32	0.00	35.32	1.70	37.02
DAIRYGOLD	6.74	22.89	4.12	15.26	4.00	34.16	1.05	35.21	1.69	36.90
NORTH CORK	6.93	23.55	4.16	15.42	4.00	34.97	0.20	35.17	1.69	36.85
KERRY	6.53	22.20	4.36	16.15	4.00	34.35	0.50	34.85	1.67	36.52

3. Activity since last National Council 

Milk Price Negotiations 

Milk Price Negotiations for this season were successful with all producer groups securing additional premiums. To cover the rise in input costs the committee has outlined that an additional 10cpl premium is required per month over 6 months to make the system viable. Concern is expressed over the volume of supply over winter going forward as liquid milk producers are particularly vulnerable to the recent changes in nitrates policy. It is estimated that just 270 suppliers supply over 50% of the contracted supply over winter months. Current AI statistics published weekly by ICBF would indicate a reduction in the number of cows being bred to produce milk next Autumn. 

Producer Organisation Legislation 

In July 2023 SI 396/2023 was published. This legislation provides for the establishment of producer organisations and for the first time ever provides a legislative framework for the establishment of producer organisations for milk and milk products. In an environment where farmer margins are constantly being eroded by declining food prices, this legislation could be used by farmers to fight for better prices. For the liquid milk sector, the potential exists to leverage such legislation against the dominance of private label milk which has put downward pressure on milk price for the past 15 years.  

4. Any EU/COPA developments 

N/A 

5. Upcoming issues 

N/A