Dairy Council Report July 2023

1. Policy proposals for approval by National Council 

NA 

2. Market Report (if relevant) 

The global market for dairy remains particularly difficult. The expected recovery for the second half of 2023 is delayed. The latest GDT auction (18^th July) reported a negative outcome of -1.0%. This is the fourth successive negative auction. In the European market (12^th July), Butter is trading at €4605, SMP is at €2355, and WMP is at €3562. The Ornua PPI for June equates to 36.7cpl including VAT. The Ornua Value Payment for June equates to 2.14cpl including VAT. Early Milk price announcements for June would signal further milk price cuts.   

May Farm Gate prices at 3.3% protein and 3.6% fat.  

3. Activity since last National Council 

Bord Bia TAC  

The TAC has reconvened with the objective of revising the current SDAS and SBLAS.  So far, we have been asked to review additional measures under Module B which encompasses environmental sustainability. Many of these measures are onerous and we have questioned their admission to the standard. The second meeting is due to take place in August.  

Food Vision 

The Food Vision Dairy group met for the first time this year in June. This meeting was to focus on Measure 5, the development of a voluntary reduction scheme. DAFM cannot guarantee that the introduction of such a scheme can be achieved without a cap on overall herd numbers so hence at this stage we cannot agree to this measure. DAFM have asked group members to complete a written consultation on the measure by the 31^st July.  

Milk Price 

Given the decline in milk price we have met with Kerry, Lakelands and Aurivo to impress on them the importance of supporting milk price especially over peak months. Meetings were arranged with these processors as they paid some of the lowest milk prices in April and May.  

Nitrates Lobby 

The committee have continued to lobby TDs and DAFM staff on the nitrates “250 to 220” campaign. Worth mentioning is our visit to the Timoleague catchment with Ted Massey and our presence at the Moorepark Open day and at the Oireachtas Committee on Agriculture.  

4. Any EU/COPA developments 

N/A  

5. Upcoming issues 

• Food Vision Consultation Document due the 31^st July  
• Bord Bia TAC in August  

• Interim review of the NAP due to commence shortly.