Processors on tenterhooks ahead of peak milk supply

For most processors, calendar week 19 or 20 (this week or next) is peak supply when every litre of milk processing capacity is needed.

This brings a certain risk to businesses because if there is equipment failure, the backlog for processing could build very quickly.

In the past, working relationships between processors have seen milk flow from one site to another. With volumes up significantly, there is less room for these arrangements now.

Collection

There is also a risk around milk collection. A flat tyre or a truck crash could mean a five- to six-hour delay, which could throw collection schedules out. As cows peak in supply, there is little capacity for a problem at farm level.

Often processors don’t know when exactly peak milk supply is until after the event has happened. A number of processors have commented that this week and next week’s milk supply will be very close in terms of volume.

This year, favourable weather conditions for grazing and improved compactness of calving mean peak milk supply could come slightly earlier than other years. It is likely in May this year that over one billion litres of milk will be processed.

Processors' comment

In the south and east of the country where dairy herd expansion has taken place, milk collections are running at capacity. In Dairygold, there are currently 220 lorries of milk per day being collected and weekly volume processed at peak is likely to hit 44m litres.

In the Glanbia catchment, week 20 was peak last year, but weeks 18, 19 and 20 had very similar volumes.

Last week’s supply was up 10% on same week last year

A spokesperson told the Irish Farmers Journal: “Last week’s production was only marginally up on previous week so this could be peak week. Calving started later but was more compact. Last week’s supply was up 10% on same week last year."

Meanwhile, in west Cork the main processing site for Carbery at Ballineen is very busy. In the morning, you can see trucks queuing for up to an hour to drop off milk from 9.30 to 10.30am.

It is a similar story in Kerry, where peak milk will occur this week or next.

In the west, Aurivo reports peak milk is likely to be next week, which will be 10 days ahead of last year, while in the Lakeland catchment milk processed at the Artigarvan site is only slightly up, according to a Lakeland spokesperson.

Some industry sources had suggested that double the milk that was flowing into the former LacPatrick processing site at Artigarvan was now flowing through the plant on a daily basis. The spokesperson confirmed that up to 1.2m litres of milk is flowing through the site per day, which is up only slightly on last year.

Tipperary Co-op

A spokesperson for Tipperary Co-op said the facility is operating to full capacity while preparing for the commissioning of a new 4t/hour powder-drying facility in Tipperary town later this year. Scheduled to be fully operational for the 2020 season, the new drier will double powder production at the site and construction of the facility is now nearing completion.

Tipperary has seen milk supply growth of over 20% since 2015 and the company expects to process more than 300m litres this year. Costing close to €30m, this will be the largest investment by the co-op since its inception in 1908.

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