Rapid drop in milk price hits hard in Ireland

Just like in the Netherlands, milk prices are also under pressure in Ireland. Dairygold recently lowered the payment price for August by 3 cent, but this change was not well received. The Irish Farmers Association (IFA) describes the reduction as 'over the top.' Members of the cooperative have gone to voice their concerns at the cooperative office. With this reduction, the milk price from Dairygold stands at 45 cents per liter, based on 3.3% protein and 3.6% fat, including sustainability bonuses. The board of the cooperative speaks of a dramatic deterioration in the dairy markets, primarily due to higher global milk supply and weakened consumer demand. The butter and cheese markets are particularly affected. Other Irish processors also lowered the milk price in August, but less than Dairygold. According to Dairygold, the situation is additionally challenging because milk production is coming down from the seasonal peak period, resulting in extra stocks. Ireland is among the fastest growers in Europe. Irish dairy companies processed 1.04 million tons of milk in July, an increase of 3.6% compared to the same month last year. The cumulative milk production up until July totaled 5.82 million tons, a rise of 6.2%, bringing volumes back to the level of 2022. Not desirableThe reduction by Dairygold has led to strong criticism in Ireland. According to the IFA, a decrease of 3 cents was completely unexpected, although there is understanding for the rising global milk production and the resulting pressure. For an average supplier of Dairygold, this results in €1,600 less milk money in August. In times of high costs, such rapid devaluations are undesirable for dairy farmers. The representative organization urges cooperatives to avoid drastic reductions in payment prices in the future. Members of Dairygold are extremely upset about the reduction and protested last Friday at the cooperative office. According to them, the milk price has been insufficient for a long time, and the reduction of 3 cents was the final straw. They demand the immediate resignation of the management. The management of Dairygold will meet with the members at the end of this month. In line with the market The extent to which the criticism of the milk price reduction is justified can be debated. Milk prices are also under pressure on the European mainland. Reductions of more than €3 have now been implemented by the Belgian Milcobel. Other processors are likely to follow suit quickly. Due to the sharply reduced raw material value of milk, the milk price is precariously positioned.