Access to land to hit Dairygold milk supply

Over one-third (37%) of Dairygold suppliers have said that access to land and maintaining stocking rate will impact milk production, a new survey by the processor has found.

Some 52% of Dairygold suppliers feel environmental issues will impact milk production on their farm. Worryingly, only 15% of respondents said they had a clear succession plan in place.

The survey was conducted by ifac in September 2024 and 94% of Dairygold’s 2,900 suppliers responded to the census. Despite this, 57% of suppliers said they intend to invest in farm infrastructure over the next five years, with 31% planning investment in slurry or soiled water storage.

The survey also suggests that there will be a 5% drop in milk supply over the next six years to the co-op.

The results predict milk deliveries of 1.38bn litres per year over the next six years to Dairygold, an 80m-litre drop on the 1.46bn litres that were delivered annually over the last three years per year.

However, Dairygold has said that given a 1% annual increase in milk volume per cow per year, the total annual supply will remain stable at 1.46bn litres.

Strategy

Dairygold CEO Michael Harte said the results will inform the processor’s strategy for milk operations and commercial planning for the next six years, including the decisions needed to deliver sustainable growth for milk suppliers and the society.

“The census confirmed that the greatest risk to milk supply is the nitrates derogation and continued Government support for the industry on this issue is imperative for the future economic livelihood of Dairygold milk suppliers and the Dairygold business,” Harte said.

The Irish Farmers Journal understands that even at 1.46bn litres processed annually there will be significant excess capacity, even at peak, within the Dairygold plants and that with recent investments, the co-op could process over 1.6bn litres annually.