Dairy farm incomes show dramatic drop in the first half of 2026

Dairy farmers could have experienced a loss of almost €38,000 in milk payments within the first half of 2026, depending on which co-op they supplied

Topping the table for the smallest difference in 2025 to 2026 milk payments are the four West Cork co-ops Lisavaird, Drinagh, Barryroe and Bandon all operating under Carbery Group.

Recent analysis revealed that dairy farmers lost from €31,000 to almost €38,000 in the first half of the year compared to 2025 figures, depending on the co-op they supplied.

The Irish Farmers’ Association (IFA) compiled and analysed the data following the announcement of the June milk prices, compiling and comparing January to June milk payments in 2026 to 2025.

“These figures are stark and show how big a cash flow impact the fall in milk price is having on dairy farms. What is even more concerning is it represents only half of the year,” said IFA Dairy chairman, Martin McElearney.

The IFA Dairy Committee reviewed farm revenues for the first half (H1) of 2026 from 12 dairy processors for a typical spring calving farm supplying 500,000 litres of milk per year.

The analysis is based on actual payments received by farmers for milk supplied in the first half of the year in 2026. Therefore, any end-of-year payments relating to sustainability or otherwise are excluded.

The processor with the largest documented loss between 2025 and 2026 was North Cork Creameries at €37,654. The co-op's June 2026 milk price was reported at 37.28cpl, determining a H1 2026 milk payment of €107,985.

The second largest loss at €36,254 was experienced by Kinisla suppliers who received a June milk price of 37.11cpl and a January to June payment of €110,226 in 2026.

The third and only private milk purchaser on the processor list, Strathroy, announced a June milk price of 39.04cpl, amounting to a H1 milk payment of €112,617. This amounted to a €35,468 difference between 2026 and 2025 payments.

Aurivo, Tirlán and Arratipp suppliers experienced a drop of over €34,000 in payment differences at €34,882, €34,392 and €34,347 respectively in H1 payments between 2026 and 2025.

Aurivo issued a 39.03cpl June milk price amounting to €113,066 in milk payments for January to June. Tirlán’s June milk price was 38.08cpl, which meant suppliers received a total of €111,772 in milk payments for the first half of 2026. Arratipp announced a June milk price of 38.12cpl, giving suppliers a milk payment for January to June of €111,410.

Dairygold suppliers have experienced a payment drop of €33,115 on 2025 figures, with suppliers receiving €113,207 in January to June 2026 payments and a June milk price of 39.25cpl.

Next is Lakeland Dairies, which saw a drop of €33,104 in payment figures in 2026 to 2025. Suppliers received a June milk price of 37.52cpl and total January to June payments amounting to €110,209.

Topping the table for the smallest difference in 2025 to 2026 milk payments are the four West Cork co-ops Lisavaird, Drinagh, Barryroe and Bandon all operating under Carbery Group.

The Lisavaird and Drinagh co-op suppliers both experienced drops of €31,128 between 2026 and 2025 figures, with January to June milk payments totalling €117,563 and €117,535 respectively. Lisavaird announced a 39.54cpl June milk price, while Drinagh announced 39.53cpl.

Bandon and Barryroe co-ops announced a June milk price of 39.44cpl, both issuing total January to June 2026 payments of €117,402. Despite the consistent figures in the first half of 2026, Barryroe suppliers experienced a drop of €30,966 in the difference between 2026 and 2025 payments, and Bandon suppliers experienced the least difference at €30,732 in the same period.

Mr McElearney said:

With half the year gone, we are seeing differences in milk revenues of approximately €10,000 between the top and the bottom of the table. This difference is too great to be ignored.

The Carbery co-ops continue to lead the table in terms of milk price, paying €4,000 more to its suppliers than its nearest competitors Dairygold and Aurivo, with Strathroy the only private purchaser, sitting mid-table.

Global milk supply continues to outstrip demand, which has led to a milk price reduction of 10cpl since last August.

“Combined with higher feed costs due to the lengthy spring and the recent prolonged dry spell, many dairy farms will be operating below the cost of production in 2026 unless we see a substantial recovery in milk prices,” said Mr McElearney.

“Co-ops should be looking to top the table rather than what we see as the quiet acceptance among processors that the West Cork co-ops own this spot,” he concluded.