2016 cost per litre of milk lowest in years

There is no dramatic evidence of an increase in the costs of production since the removal of milk quotas, said Teagasc economist, Trevor Donnellan, when he presented his review of dairy farming in 2016.

In fact, the extra milk produced has had the effect of diluting the overall costs of production, with the cost of producing a litre of milk lower now than it has been for a number of years.

Summarising 2016, Trevor Donnellan said there was a drop in milk prices, dairy margins and farm incomes.