Drinagh co-op has topped the league for its 2023 average base milk price according to analysis carried out by the Irish Creamery Milk Suppliers’ Association (ICMSA).

The ICMSA Milk Price Review for 2023 reveals that Drinagh had an average base milk price with bonuses last year of 41.05c/L, generating revenue of €164,183.50 for a sample supplier of 400,000L.

The price is based on base solids of 3.3% protein and 3.6% butterfat.

By comparison, Lakeland Dairies came in on the lower end of the scale with an average base milk price including bonuses of 37.78c/L, generating revenue of €151,104.88 (based on 400,000L).

This represents a difference in revenue between Drinagh and Lakeland for average base milk price in 2023 of €13,078.62.

Processorsc/L€
Drinagh41.05164,183.50
Lisavaird40.90163,604.03
Bandon40.86163,453.03
Barryroe40.85163,404.59
Strathroy39.99159,947.66
Arrabawn39.45157,794.74
North Cork39.30157,195.43
Dairygold38.93155,734.17
Boherbue38.88155,502.60
Kerry Group38.69154,774.71
Tirlán38.35153,385.45
Aurivo38.10152,413.32
Tipperary38.00152,013.65
Lakeland Dairies37.78151,104.88
2023 average base milk price ranked. Source: ICMSA Milk Price Review 2023

The above prices and revenue are based on a 400,000L supplier following the weighted percentage of milk supplied to co-ops in 2023.

Somatic cell count (SCC) was assumed at 150,000, total bacterial count (TBC) at 10,000, lactose at 4.6 and thermoduric at 200.

The ICMSA said that all bonus and penalty payments are based on manufacturing milk.

Following the publication of the Milk Price Review, ICMSA Dairy chairperson, Noel Murphy has described the range between top and bottom as “worrying” and emphasised that such a wide margin cannot be allowed to continue into the remainder of 2024.

“While the range from top to bottom stands at over 3c/L, it amounts to a significant €13,000 for a 400,000L production herd,” he said.

“The caveats of this analysis are published in full in the report but at a basic level, it looks at the average base milk price with available bonuses added on top.

“A full list of these inclusions are attached and it reveals the complicated nature of milk pricing. This is why ICMSA believes it is vital to do this analysis to provide our farmer members with the transparency that can be so hard to see on a monthly basis.

Concluding Murphy, said that the other notable characteristic of the 2023 prices is the “absolute freefall” in overall milk price that was experienced compared to 2022.

“While the range was over €8,000 last year, the top price paid plummeted by over 14c/L, and this has had a devastating effect on dairy farmers given the high cost environment that continued into 2023.

Details of milk price and bonuses

Arrabawn.

  • 0.2c/L (excl. VAT) bonus on all milk with an SCC less than 200,000.

Aurivo

  • 0.21c/L (excl. VAT) protein bonus available for every 0.05% protein achieved, above the co-op average protein %, in an individual month;
  • Aurivo has a milk storage bonus which is available to suppliers with a minimum annual supply of 160,000L that have enough refrigerated storage capacity to cover seven milkings at peak production. The storage bonus of 0.44c/L was taken from the ‘C’ from September 2021. ‘C’ is 3.813;
  • Aurivo pays a 4c/L (excl. VAT) early calving bonus on all milk supplied in January;
  • Aurivo pays a 3c/L (excl. VAT) early calving bonus on all milk supplied in February;
  • Aurivo pays 2c/L (excl. VAT) early from the Stability Fund on all March to July milk;
  • Aurivo pays 1.5c/L (excl. VAT) early from the Stability Fund on all August and September milk.

Carbery Group

  • 0.5c/L (excl. VAT) from March to October and a 0.88c/L (excl. VAT) bonus from November to February to suppliers who achieve a SCC of less than 200,000;
  • 1c/L sustainability bonus to farmers who have committed to Carbery’s FutureProof programme. This was paid on all milk supplied in 2023 to farmers who have signed a sustainability pledge and agreed to undergo an ASSAP water quality assessment.

Dairygold

  • 0.25c/L included and 0.1c/L for the Sustainable Dairy Assurance Scheme (SDAS), 0.1c/L for sign-up to milk recording (4/yr) and 0.05c/L for sign-up to milk recording and a Munster Bovine herd health scheme; Dairygold also has a 0.04c/L maximum bonus attainable by farmers who achieve the minimum requirements for six criteria (TBC, thermoduric, sediment, SCC, lactose and inhibitors); this cumulatively amounts to 0.65c/L (excl. VAT);
  • 3c/L (excl. VAT) early calving bonus to all members who meet the quality criteria in January;
  • 2c/L (excl. VAT) early calving bonus to all members who meet the quality criteria in February;
  • 1c/L (excl. VAT) early calving bonus to all members that meet the quality criteria March.

Kerry

  • 0.4c/L (excl. VAT) bonus on all milk with an SCC less than 200,000 and 0.1c/l (ex VAT) for SDAS;
  • 1c/L (incl. VAT) on all milk July to December paid in January 2024.

Lakeland Dairies

  • 4.75/L (excl. VAT) bonus if more than 45% of May milk production was supplied in January, February, and December. This did not qualify in this scenario due to the volumes supplied;
  • 2.84c/L (excl. VAT) bonus if more than 50% of May milk production was supplied in November. This did not qualify in this scenario due to the volumes supplied;
  • Lakeland pays a 0.95c/L (excl. VAT) early calving bonus on all milk supplied in January;
  • Lakeland pays a 1.9c/L (excl. VAT) early calving bonus on all milk supplied in February;
  • Lakeland paid an input support payment paid January to April of 1.422c/L (excl. VAT).

North Cork 

  • 0.19c/L (excl. VAT) bonus on all milk with an SCC of less than 200,000;
  • 0.14c/L (excl. VAT) bonus on all milk with an SCC of less than 200,000 with four milk recordings;
  • 2c/L (excl. VAT) bonus on all milk incl. Fixed Price Contracts for January to March;
  • 1c/L (excl. VAT) paid on all milk volumes in 2023 paid in March 2024.

Strathroy

  • 0.25c/L (excl. VAT) bonus on all milk with an SCC of less than 200,000;
  • 0.25c/L (excl. VAT) bonus on all milk with an TBC of less than 10,000.

Tipperary

  • 0.25c/L (excl. VAT) on all milk with an SCC less than 250,000;
  • Tipperary pays a 3c/L (excl. VAT) unconditional winter bonus for November milk;
  • Tipperary pays 0.95c/L farm input payment in May, June and July;
  • Tipperary pays 1.9c/L farm input payment in March and April;
  • Tipperary pays a 3c/L (excl. VAT) unconditional winter bonus for January, February , November and December milk.

Tirlán

  • 6.16c/L (excl. VAT) Agri Input Price payment on all milk for January, February and March including Fixed Milk Contracts;
  • 0.47c/L (excl. VAT) Sustainability Action Payment paid monthly on all milk supplied in 2023;
  • Tirlán pays an unconditional 3.8c/L (excl. VAT) seasonality bonus for January;
  • Tirlán pays an unconditional 2.85c/L (excl. VAT) seasonality bonus for February;
  • Tirlán pays a weather payment 0.95c/L (excl. VAT) for March;
  • Tirlán pays an unconditional 3.8c/L (excl. VAT) seasonality bonus for December.
CO-OPS DAIRY ICMSA MILK PRICE