What are North Cork and Carbery paying for milk?

North Cork Creameries, the embattled dairy processor based in Kanturk, Co Cork, has increased the milk price it pays to its suppliers for March.

In February, the co-op paid the lowest milk price of any co-op in the country at 33.3c/l excluding VAT, based on the Irish Farmers Journal monthly milk league.

For March supplies, the price paid is 35.89c/l excluding VAT, an increase of 2.59c/l excluding VAT, compared to February.

The big change since the last milk price announcement has been the processing deal with Carbery, announced on 2 April.

Partnership

The press release accompanying that statement and the message sent to North Cork Creameries milk suppliers said that the partnership with Carbery will ensure a better milk price for its members.

“North Cork Creameries is committed to paying a competitive milk price to milk suppliers and the agreement with Carbery will support this objective,” the statement read.

Meanwhile, the milk price announced by Carbery is significantly higher than the price paid by North Cork, when all additional payments are included.

The Carbery base price for March is 37.61c/l excluding VAT, but including the full Futureproof payment of 1.5c/l, and SCC payment of 0.5c/l excluding VAT.

Stability fund

In addition to this, Carbery is paying a 1.5c/l excluding VAT payment out of the stability fund, so the maximum attainable milk price, if replicated across the four west Cork co-ops, is 39.11c/l excluding VAT.

This is 3.22c/l excluding VAT higher than the North Cork milk price and is just under 1.5c/l below the Carbery milk price when Futureproof and SCC payments are excluded.

Incidentally, 1.5c/l is exactly the amount Carbery is paying out this month from the stability fund. The stability fund is a fund built up by Carbery over the last number of years to be paid out in low milk price periods.

Neither Carbery nor North Cork have disclosed the specifics of their milk processing deal to the Irish Farmers Journal.