Liquid Market Summary
- Fresh milk in the supermarkets has risen 30% since the beginning of the year. This is the first time the price of fresh milk has risen in supermarkets since 2008.
- Another rise is expected before year end.
- A number of meetings have taken place with processors on the winter premium, facing resistance on this moving up due to high price of manufacturing milk. As outlined below this premium should increase due to the significantly higher cost winter milk producers now face.
Liquid Milk Committee Meetings
- In September the Liquid Milk Committee had a meeting with James Dunne of Teagasc where James went through the cost of producing winter milk for 2022/2023. Main points covered below.
Winter calving v Spring Calving 2022
- Feed price is a real concern – a high level of efficiency around feeding the herd next winter will be required.
- The difference in costs between winter and spring herds is projected to be €428 per cow.
- On a per litre basis the difference is an additional incurred cost of 2.8 cent per litre even after taking into account that the winter herds produce 649 additional litres per cow.
Winter Calving 2021 v 2022
- The projected cost increases on winter milk farms in 2022 stands at €712 or 10.94 cent per litre compared to 2021.
- Upcoming meetings with retailers.
- Upcoming meeting with the National Milk Agency to discuss representation and other items.