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As the sun shines, milk processors are hitting new records for the volume of milk processed.
As a result, there is big pressure on processing facilities.
Most of the Irish processors report milk volumes still rising slightly week on week, but milk intake is at peak or very close to peak.
A spokesperson for the Kerry Group reported milk volumes continue to rise and last week over 35m litres was processed.
Dairygold reports a similar trend with last week’s milk volume up 7% on the same week in 2016 with 41m litres processed, but volumes still rising. This week’s milk supply to Glanbia is expected to be over 68m litres.
Increase
Subject to weather conditions, there is expected to be some further increase before peak supply is reached. Little in the way of rain is forecast for the east of the country in the coming days so dry conditions could reduce milk supply if the very dry weather continues.
Reports from Carbery suggest milk was up 2.8% week on week compared to the week previously. Aurivo reports close to 10m litres of milk was processed last week.
Processors in the southern half of the country will be first to hit peak milk intake as generally cows start calving that bit earlier than the rest.
Normally peak milk intake is May 15 plus or minus a day or two.
In comparison, Aurivo in the west will be about 10 days later. In May 2016, CSO statisitcs show monthly domestic milk intake was estimated at 918m litres.
PPI
On Wednesday, Ornua set the Purchase Price Index (PPI) for April at 105, down marginally from the March PPI of 105.3. This equates to a farmgate price of 30c/l (ex VAT). IFA dairy chair Sean O’Leary has said that the commodities exported by Ireland show a positive price trend, with butter reaching record highs.
“Volatility is at play, but in the medium term, the factors above could actually promote improvements in powder prices, in particular,” he said.
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