The exodus of farmers from high-cost liquid milk production continues, with 38 fewer farmers milking cows last winter compared to the previous year.

Some 1,286 farmers produced liquid milk last year, down 3% year on year, the National Milk Agency report for 2022 shows.

In the last 10 years, 658 producers have exited the fresh milk supply chain, a reduction of over 35%.

Since the National Milk Agency was established in 1995, the number of producers has fallen by 62%.

“The number of registered producers with contracts continued to fall as producers exiting the domestic fresh milk supply chain are not being replaced by new entrants,” the agency stated.

“The continuity and sustainability of the all-year round milk supply model, with its requirements for spring- and autumn-calving and its high feed and labour costs, is being increasingly challenged by the alternative lower-cost model of seasonal, pasture-based milk supply for manufactured dairy products for export.”

Registered producers with contracts accounted for 8% of all milk producers in the State and had annual milk supplies of 915m litres in 2022, equivalent to 10% of domestic milk supplies.

Winter milk supply

In the five prescribed winter months of October 2022 to February 2023, the total milk supplies of registered producers amounted to 285m litres, down 14m litres on same period in 2021/22.

In the months of December 2022 and January 2023 the total supplies of registered producers amounted to 109m litres, a reduction of 7m litres in the same months of 2021/22.