We already know that domestic milk intake in this country was down by 365 million litres in 2023, according to the Central Statistics Office (CSO).
Many farmers and co-ops are also indicating that milk production appears to be down by up to 10% in some areas as a result of extremely challenging wet weather since last summer.
Meanwhile, the Global Dairy Trade (GDT) index recorded its fourth increase on the bounce following the latest trading event on Tuesday, May 21.
The index now stands at 1,143, the highest figure since October 2022. This is an increase of 3.3% on the preceding GDT event.
Speaking to Agriland, policy executive with the Irish Creamery Milk Suppliers’ Association (ICMSA), Paul Smith said: “At the moment, it’s looking more upbeat that it was a couple of weeks ago.
“What we’ve seen in the last two weeks is an uplift in butter prices; it has been coupled with that increase in the GDT, so we’re more positive than we were, but it’s been a very volatile first five months.”
Click the video below to watch the interview with Paul Smith.
Smith explained that the lift in butter price is certainly something that bodes well for the next few months.
Drop in milk production
In recent days, Dairygold confirmed that it will reduce cheese production over the coming months due to a drop in milk volumes.
The processor, which is based in Co. Cork, said that milk volumes to-date this year are 9% lower compared to the same period in 2023.
It is also forecasting that volumes will be back by around 7% for the entire year.
“Dairygold has no choice, but to take measures to mitigate the impact of reduced milk volumes on the business and milk suppliers,” a spokesperson told Agriland at the time.
“As a result, Dairygold has made the difficult decision to reduce cheese production over the summer months and allocate milk volumes elsewhere within Dairygold.”
The ICMSA has said that it is “concerned” about such a decision.
Smith told Agriland: “I presume they are making decisions based on supply and based on milk that’s coming in.
“We’ve seen that supply has been back across Ireland and that’s predominantly due to weather more so than anything else.
“Obviously the nitrates is kicking in as well, so processors are obviously looking at their supply profile and seeing that they’re not having as much milk and have to make adjustments to what products they’re making.”
Smith explained that dairy farmers are “not in a place we want to be in”, when trying to produce as much as they would have previously, without the weather challenges.