IFA Milk Price Analysis Shows Larger Processors not Delivering

Commenting on the publication of the 2023 IFA Milk Price Analysis, IFA Dairy chair Stephen Arthur said it’s clear that some of the largest co-ops in the country simply aren’t delivering for farmers, with the analysis showing them generating the lowest milk revenues in the country.

“When we distil down all the information and peel back the layers, we can see that there is a difference of over €14,000 in revenue between the best and worst paying milk processors. Farmers are entitled to ask how some processors, particularly the smaller co-ops, are able to pay a better milk price,” he said.

In the past year, some processors have introduced conditional sustainability bonuses as part of the milk price. However, these have been excluded from the IFA analysis.

“Sustainability comes at a tangible cost. Farmers can no longer afford to carry this burden. The marketplace has to deliver additional margin to cover this cost, all of which has to make its way to the farmer’s base milk price.”

The analysis examines the revenue that would be generated from each milk processor for a 500,000-litre spring calving milk supplier with national average solids. This is the fifth year of the analysis.

“We would like to pay special thanks to the farmers that provide us with their monthly statements for this analysis as it simply couldn’t be done without their co-operation.” concluded Stephen Arthur.

The full analysis can be accessed here.