Irish processors climb in milk price comparison

The average milk price in the European Union in January is €33,77 per 100 kilos, an increase of €0,34 compared to a month before. Compared to the same month a year ago, a decrease of €0,52 is visible in the milk price. In percentages it is a minus of 1,5%. The good news is that this is the eighth increase in the European milk price in a row. Since May 2020, the milk price has increased by €1,59 per 100 kilos (+4,9%).

Irish dairy farmers are rising
The Irish dairy processors in particular showed large positive results in the first month of the year. Dairygold's milk price increases by no less than €2,91 to €35,28 per 100 kilos. This now ranks third in the comparison. The increase does not have much to do with market forces, because the increase is entirely caused by the 'early calving' bonus paid in January. This premium is intended to stimulate winter production.

The milk price of Glanbia also showed a significant increase in January, a plus from €1,50 to €34,90 per 100 kilos. The dairy processor thus rises to fourth place in the LTO milk price comparison. Also last month the Irish dairy has already performed well by taking significant steps upwards, although this is mainly due to the payment of the seasonal bonus. Granarolo (+€1,50 to €39,32) and Milcobel (+€1,40 to 30,12) show big pluses in the first month of the year, due to higher fat and protein values.

The largest decline in January was visible at Arla Foods. The milk price of this dairy has dropped by €1,20 to €32,11 per 100 kilos. The decrease is due to a reduction in the price of fat. The FrieslandCampina cooperative also dropped its milk price sharply in January: - €0,90 to €33,44 per 100 kilos. DMK's milk price fell by €0,80 to €31,83 per 100 kilos. This is because a supplementary payment of €0,70 was paid out a month earlier.

Outlook
The makers of the comparison do report that the milk price development for the next two months remains difficult to estimate. "Although the dairy market looks more positive, as evidenced by higher quotations in recent weeks, the picture of the milk price in February and March is variable and cautious." This refers, among other things, to the fact that Arla's milk price remains stable in February, before rising by €0,50 in March.

FrieslandCampina is also recording plus figures for the next two months, of €0,70 and €0,20 per 100 kilos respectively. Milcobel's milk price increases by €0,50 for the month of February, while Saputo Dairy's milk price remains stable until April. At DMK there has been a decrease for the month of February (-€0,50), although this will be reversed in March (+€0,50).