West Cork farmers offered up to 37.25c per litre for milk for three years

Carbery offers fixed price for up to 10% of supply

Good milk price prospects for West Cork dairy farmers like Jerry and Carmel Keohane, Clonakilty, Cork, suppliers to Barryroe Co-op, and winners of the lowest SCC award in the 2020 NDC & Kerrygold Quality Milk Awards.

ICMSA has welcomed Carbery’s offer to milk suppliers through the West Cork co-ops of a three-year fixed milk price scheme beginning on January 1, 2021, and ending on December 31, 2023.

The price for the three-year period at 3.6% butterfat and 3.3% protein is 32.94c from March 1 to October 31, and 33.34c from November 1 to February 28.

At Carbery’s averages of 4.13% butterfat and 3.56% protein, those prices would work out at 36.85c and 37.25c, respectively.

This scheme is available to all milk suppliers at a minimum of 10% of 2020 supply volumes.

ICMSA’s Dairy Chair Ger Quain said it is a major statement in terms of market confidence, and all processors must look at spring 2021 to make sure that prices can start off the new year in a positive note.

He also said all co-ops should pay at least 32cpl, when they shortly announce prices for last month’s milk.

Meanwhile, Kerry’s latest forward milk price scheme offers 32c per litre from next March to October 2021 at 3.3% protein and 3.6% butterfat, including Vat.

Participants can fix the price of up to 30% of their contracted milk supply.

ICOS, representing co-ops, said last week that dairy markets continued to be remarkably stable, despite the challenges posed by the Covid-19 crisis, and with a number of downside risks on the horizon.

EU deliveries were up 0.5% in August and 1.8% year to date.

The most recent figures available, for September, showed Irish milk intake up 1.4% compared to September 2019, and the year to date intake ahead 3.2%.

The European Commission has estimated that milk output will increase by 1.4% in 2020, and 0.8% in 2021.

Elsewhere, milk flows are strong in Oceania, with New Zealand output up 1.7% in September, as their industry approaches peak production.

Global Dairy Trade auction results have been positive in recent months with whole milk powder quotations above $3,000 per tonne.

However, the average price fell 2% at Tuesday’s Global Dairy Trade auction.

USA milk deliveries were 2.3% up year-on-year in September, with dairy cow numbers up 46,000.

EU dairy quotations are stable with the EEX Index at €3,402/tonne, and Dutch quotations at €3,350/tonne.

ICOS said markets remained stable in large part due to exports to China holding up, together with government support programmes and strong retail performance.

The key buying periods over the next months and the impact of Covid-19 will be watched closely.

Currency movements were supporting New Zealand and US exporters.

Low oil prices continued to impact purchasing power in key markets.