Dairy farmers in the Republic of Ireland (ROI) have received 5p/l more for milk supplied over the past 12 months than their counterparts in NI.

The average milk price in NI recorded by DAERA over the 12-month period ending September 2022 is 40.69p/l. The official ROI price sent to the European Commission, when converted to sterling at prevailing exchange rates, averages 45.71p/l.

For a farmer producing 750,000l annually it is a difference in income of £37,500.

Some of that difference can be explained by higher butterfat and protein percentages in ROI milk. Based on the price increments used for fat and protein in NI, if we produced the same quality milk as ROI, the gap closes to around 3.5p/l.

There are also efficiencies to be realised in processing because ROI milk has higher solids, but with a relatively flat production profile in NI, there are also efficiencies to be had when a factory remains operational throughout the year.

To encourage out of season production and in many cases, to meet liquid milk contracts, co-ops in ROI pay significantly higher winter bonuses than counterparts in NI.

Tirlán suppliers in ROI receive an 8.9c/l bonus from November through to February for contracted litres within its autumn calving scheme. In NI, Tirlán pays a winter bonus of 1.5p/l from November to February.

Lakeland Dairies pays a bonus of 3c/l for November, then 5c/l in December, January and February, compared to 3p/l for November and December in NI. Farmers in ROI must produce between 40% and 50% of peak supply in this period to avail of the higher premiums.

Aurivo pays a winter bonus of 7.385c/l on supplies from October to March compared to 2p/l for October to January in NI. Strathroy pays a bonus of 5c/l in November and February, and 10c/l in December and January, compared to 1p/l from October to February in NI.

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