Milk production in Ireland fell sharply in the last months of 2023 and fell to the lowest level since 2017. Low milk prices can be seen as one of the causes of the production decline.
The latest figures from Eurostat show that milk production fell by as much as 20% in November, compared to the same month a year earlier. At 400,25 tonnes, November milk production has shrunk to the lowest level since 2017. A significant decline was also visible in September and October and appears to be accelerating. Milk production has also fallen in the Netherlands since last autumn, but not nearly as sharply as in Ireland.
Low milk prices
Low milk prices can be considered as the cause of the declining production. Irish milk prices fell last year to around €35 per 100 kilos, making them far below the European average. This is a great annoyance to Irish dairy farmers who have expressed strong criticism.
In the meantime, the upward trend has started again. For example, Lakeland Dairies increased its December milk price by €1,15 to €37,15 per 100 kilos, excluding surcharges. The Irish Dairy Farmers' Union (ICMSA) believes that milk processors should be able to pay at least €39, based on the valorization of dairy products. What may also be putting pressure on milk production is that Irish dairy farmers have recently had to deal with the tightened derogation standards: from 250 kilos to 220 kilos of nitrogen per hectare.
Organic sector
Not only conventional dairy farmers, but also organic dairy farmers complain about the low payment prices. Irish media have WhatsApp messages in which organic dairy farmers discuss stopping milk deliveries for a week in an attempt to force higher prices. As a rule, organic milk prices in Ireland are about €15 above the usual payment prices, but according to dairy farmers that is not enough to cover the costs.