In recent years, dairy processors operating in Northern Ireland (NI) have gradually moved towards a milk solids payment system. Tirlán was first out of the blocks, and from January 2022 its suppliers were on a three-year transition to a payment based on kilogrammes of butterfat and protein supplied, minus a processing cost for milk (A+B-C).

In May 2024, NI’s largest milk processor, Lakeland Dairies announced it was also changing how it paid for milk, with farmers given the option of switching to an A+B-C model, before it becomes compulsory across all suppliers from January 2026. Omagh-based Strathroy Dairies also gives suppliers the option of an A+B-C model.

That leaves Dale Farm, Aurivo and Leprino Foods, which all still have a traditional increment-based system in place. However, the payments for each 0.01% change in both butterfat and protein have been significantly increased in the last couple of years. For example, Dale Farm, is currently paying farmers 0.041p/l for each 0.01% above or below a butterfat base of 3.95% and 0.067p/l for each 0.01% above or below 3.24% protein. Prior to April 2022, suppliers were paid butterfat increments of 0.022p/l off a base of 3.85% and protein increments of 0.036p/l from a base of 3.18%.

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Incentive

In practice, the changes made by the likes of Dale Farm mean the message is clear to all farmers irrespective of the payment system being used – produce higher solids milk.

That said, processors all still also pay volume and winter bonuses, which perhaps is an indicator that they want to keep high output suppliers onside and don’t want to upset the fairly flat milk production curve in NI.

Responded

Either way, it is clear that farmers in NI have responded to the greater incentives for butterfat and protein.

As shown in Figure 1, the NI butterfat average has increased from 4.06% in 2020 to 4.25% in 2024, with protein moving from 3.30% to 3.34%.

Milk solids in NI remain behind Republic of Ireland data, with the 2024 National Milk Agency report putting butterfat at 4.36% and protein at 3.55%. Butterfat is up 0.16 percentage points since 2020, while protein is unchanged.

However, in 2025, figures reported to the Irish Farmers Journal by NI processors, show that to the end of October, protein has increased in every month this year, while butterfat is up each month, apart from April. Our current best estimate (included in Figure 1) is that butterfat will end 2025 averaging 4.28% and protein will average 3.38%.

It is also important to point out that the increased milk solids are being achieved, despite increasing milk yields.

In 2020, average production per cow stood at 7,809l, which has increased to 8,054l in 2024. It means that NI farmers in 2024 produced an average of 629kg of milk solids per cow.

Over the same period, average yield is actually up more in ROI, rising over 400l to 5,690l per cow. In 2024, the data suggest ROI farmers produced an average of 463kg milk solids per cow.