Milk Price Tracker: No real changes for February supplies

The latest Milk Price Tracker, a collaboration between Agriland and the Irish Creamery Milk Suppliers’ Association (ICMSA), provides insights into the milk prices offered by the most significant Irish dairy co-ops for the month of February. The co-ops are ranked based on their base milk prices, with the highest and lowest prices highlighted. It is crucial to understand that the cent-per-litre (c/L) milk prices displayed in the table are calculated using a widely accepted milk pricing system. The conversion factor of 1.03 is applied, meaning that 1 litre of milk corresponds to 1.03 kg of milk. Agriland and ICMSA do not include support payments, bonuses, or additional payments in the calculation of the base milk price.

February's Milk Price Tracker reveals that milk prices have remained fairly steady compared to the previous month. Most cooperatives have maintained the same milk price for January supplies. The only significant change was Strathroy increasing its price by 1c/L, bringing its base price to 35c/L. Notably, half of the cooperatives are offering base prices above 35c/L, with the highest base price standing at 36.92c/L. Conversely, the other half of the cooperatives offer base prices of 35c/L or less, with the lowest base price at 32.75c/L. The average base price for February is 35.29c/L.

Despite the relatively stable milk prices, the cost of production for dairy farmers is on the rise. Factors such as the increasing cost of green diesel, soaring fertiliser prices, higher advisor fees, and the challenges of spring grazing are contributing to this trend. Additionally, milk cheques have been affected by a reduction in the flat-rate addition, which has decreased from 5% to 4.5%. These factors have led to an estimated production cost of around 37c/L, but it is likely to exceed 40c/L this spring.

In a year marked by volatility, dairy farmers are facing numerous challenges. The only positive development seems to be the calf sales, which are acting as a financial buffer for many farmers. However, even these sales have been impacted by the overall market conditions. As the dairy industry navigates these uncertainties, the Milk Price Tracker continues to provide valuable information for farmers and stakeholders, helping them make informed decisions about milk production and pricing.