February milk prices confirmed by co-ops

The conflict in the Middle East is a cause for worry for some co-ops, which predict lower demand from the region as they announce February milk prices

Dairygold, Kerry Dairy Ireland, and Tirlán have all announced their February milk prices.

February milk prices have been confirmed by Dairygold, Kerry Dairy Ireland, and Tirlán, with all three holding their base milk prices.

The Dairygold board has announced it would maintain its February quoted milk price at 36cpl based on standard constituents of 3.3% protein and 3.6% butterfat, inclusive of sustainability and quality payments and Vat.

The attainable Dairygold Milk Price is 41.2cpl at standard constituents, with the addition of Dairygold’s early calving payment for February at 5.2cpl, including Vat.

The average farm gate milk price for February will equate to 48.7cpl for the month, based on the average milk solids achieved by Dairygold milk suppliers.

The quoted milk price for February, based on EU standard constituents of 3.4% protein and 4.2% butterfat, is 45.2cpl, including the early calving payment and inclusive of VAT.

Dairygold chairperson Pat Clancy said: “Dairy markets have shown some signs of improvement in recent weeks, supported by short-term buying. However, overall fundamentals remain largely unchanged, as global milk supply remains strong across all major exporting regions. Geopolitical instability caused by the expanded conflict in the Middle East is expected to impact both trade and demand.” 

Kerry Dairy Ireland also remains static at 37.5cpl, including Vat for its February milk supplies, which is inclusive of a base-price top-up of 3cpl, Vat included, quality and sustainability bonuses.

At EU standard constituents 3.40% protein and 4.20% butterfat, the milk price is 41.08cpl (Vat Inc).

Based on Kerry Dairy Ireland’s average milk solids for February, the milk price return, inclusive of Vat, quality and sustainability bonuses, is 43.30cpl.

A spokesperson for Kerry Dairy Ireland also cited the conflict in the Middle East as a situation that could cause “potential headwind with the prospect of reduced purchasing activity from the region”. 

Tirlán’s total payment will drop to 41.08cpl, including Vat, for February milk supplies at 3.6% butterfat and 3.3% protein due to a reduction in its seasonality payment; the base milk price will remain unchanged from January.

The sustainability action payment of 0.5cpl (including Vat) is available to all qualifying suppliers.

The seasonality payment of 5cpl (including Vat) will apply to all creamery milk volumes supplied during February that meet quality criteria.

This payment also applies to non-contracted volumes from autumn calving and liquid milk scheme members.

The base price, seasonality payment and sustainability action payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.

The actual average price paid by Tirlán for February creamery milk, based on delivered constituents, will be 47.99 cpl (including Vat).

Tirlán co-op is encouraging milk suppliers to consult with their vet regarding vaccinating their herds against bluetongue. Two doses are required, three weeks apart, to reduce the level of impact the disease can have in herds.

Head of animal health and welfare at Tirlán, Joris Somers, said: “Where merited, the first dose should be administered in the middle of March, the second around April 7. Vaccination is only available through your vet carrying a special DAFM licence. Protection is in place three weeks after the second dose.”