Dairy Council Report September 2024

Policy proposals for approval by National Council

No policy proposals for approval by National Council

Market Report 

• Global milk flows will turn positive as the year progresses; however, annual output should be flat. European flows are likely to improve with annual growth of +1.2% possible. Growth is being driven by Poland, Italy and smaller nations. 
• European buyer activity eased as per seasonal norms. However, demand for butter and cream was better than expected and pricing increased.
• Most dairy commodities should stabilise or lift over the coming weeks as the summer holiday season draws to a close.  However, demand still lacks clear direction. It was reported that food-service sales are weaker while the conflict in the Middle East is affecting sentiment. 
• Combined with improving European milk supply, this increases the possibility that pricing will stabilise or ease later in the year.

In summary dairy markets have generally been quiet through the summer, though interest in butter has been stronger than expected. Activity and pricing should lift in September, but improving European milk supply and modest demand has the potential to curtail the upside.

June 2024 Farm Gate prices at 3.3% Protein and 3.6% Fat – July Farm Gates prices will be presented at the Council Meeting.

Activity since last National Council Meeting

Bord Bia SDAS

Consultation on Module D Animal Health commenced but has since been suspended due to ongoing negotiations with Bord Bia in relation to unrealistic timelines being imposed by Bord Bia.

Calf Stakeholders’ Forum

16,500 calves slaughtered approx. in spring 2024.

7,532 due to TB (force majeure).

9,000 under 8 weeks. 

DAFM to issue letter on behalf of the Calf Stakeholder Group to 300 dairy farmer who slaughtered calves under 8 weeks of age.  100 of the 300 farmers received a similar letter in 2023.  Letters to go to herds of birth and not dealers.  

Calf exports to the Netherlands

Calf imports down from 100,000 calves in 2023 to 70,000 to date.  Indications from stakeholders are that exports to the Netherlands will contract further during 2025 with it discontinuing thereafter.  The reasons put forward are on animal health and welfare grounds.  The travel time, in particular, time spent on the ferry and non-IBR free status were cited as the reasons.

Judicial Review 

The result from the Judicial Review of the audit conducted by DG Sante in 2022 will be known in September.  The audit looked at and evaluated the protection of unweaned calves during long journeys.  Ireland has no support in the EU for transporting calves for 18 hours by ferry without feeding.  If the review does not go in our favour, then it has the potential of having serious consequences for dairy farmers rearing calves next spring.

Judicial review of the 5th Nitrates Action Programme

Court decision to refer a series of nine questions to the European Court of Justice for adjudication.  Timeline for decision – 12 months.  High Court’s decision will be based on the decision from the European Court of Justice. 

Nitrates Review

Mid-term review is currently underway and when appropriate assessments are completed there is a concern that those in areas where they have an exemption to operate at 250kgs may have to reduce to 220kgs.

EU/COPA developments

Proposed legislative changes on the protection of animals during transport

First reading of proposed new legislative changes on the protection of animals during transport is underway.  Proposed changes have the potential to severely disrupt live animal exports from the Island including calves and weanlings.  12 to 18 months timeline before the law will be in place with a five-year transition period proposed.