This is a subscriber-only article
Dairygold farmers are planning to produce an extra 310m litres of milk over the next five years, the co-op has revealed.
Farmers’ milk supply forecasts, combined with the co-op’s own projections, point to a milk pool of 1.64bn litres in Dairygold by 2023.
Despite the drought that affected many Dairygold suppliers, milk production increased by 2.5% this year to 1.34bn litres.
This is a 60% increase on what the co-op processed in 2009. Milk solids have risen by 70% in the same period.
Dairygold’s milk suppliers are forecasting a 6% expansion in milk production in 2019.
CEO Jim Woulfe highlighted how the co-op plans to process the extra milk at a series of area meetings in recent weeks.
The co-op’s joint venture with Tine/Mogeely Jarlsberg cheese development is expected to be completed by December 2019.
The demineralised whey powder plant at Castlefarm, Mitchelstown, and the milk evaporation and drying works in Mallow will be complete by May 2020, according to Woulfe.
On milk price, he told farmers that dairy market returns have fallen and the Dairygold portfolio of products is currently delivering a milk price of around 29.3c/l.
“A price realignment is inevitable,” he warned, pointing to falling Global Dairy Trade (GDT) auctions since mid-summer and higher milk supplies in the southern hemisphere.
SHARING OPTIONS: