Our survey results this week show end-of-September monthly milk supplies are down between 3% to 10% compared to the same month last year for most milk processors.

In west Cork and Kerry, supplies for the past week are down over 10% on the same period last year due to the extreme heavy rainfall levels.

Kerry reports supplies are back 7.5% for the month of September compared to September 2015, LacPatrick is back 9%, while Aurivo is back 8%. In west Cork, Lisavaird is back 8% while Dairygold is back 3.3% relative to the same month last year.

In a further boost to dairy farmers, the Ornua purchase price index (PPI) for September was released this week, showing the price at 92.2, which is the equivalent of 26.6c/l, VAT inclusive, (based on Ornua’s product purchase mix and assumed costs of 6.5c/l).

This a 6.4-point jump from 85.8 in August. It reflects higher returns in the month across all main products.

Joe Collins, managing director of Ornua Ingredients, said: “Dairy markets have witnessed a strong recovery in recent weeks/months and product returns and milk prices are responding.”

IFA national dairy chair Sean O’Leary pointed out that the 6.4-point surge in the Ornua September PPI put it ahead of 2015 levels for the first time. He said the index being at 92.2 points, equivalent to 26.6c/l including VAT, vindicated IFA’s call for a minimum 2c/l increase by all milk purchasers for September milk.

Somewhat surprisingly after four consecutive increases, the upward run of the GDT index came to an end this week when it recorded a 3% decline. With close to 34,000t of product offered at this week’s auction, the decline in the GDT was driven by the falling price of whole (WMP) and skimmed (SMP) milk powder.

ICMSA dairy committee chair Gerald Quain said: “The GDT fall was marginal and the overall momentum is still positive and farmers were rightfully still expecting a significant rise in October milk price.”

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