Milk production set to soar as steady price lift continues
The latest lift in milk prices will result in increased production through the back-end of the year, industry sources have predicted.
Milk supplies were up 7pc on 2015 levels to the end of August and processors expect this trend to be maintained on the back of improved prices over the last three months.
Teagasc dairy specialist George Ramsbottom pointed out that 26c/l being offered by most processors was equivalent to around 30c/l when the higher milk solids at this time of the year were taken into account.
Mr Ramsbottom said farmers with ample grass supplies were likely to milk cows on into November at current prices - provided the condition of the cows and the grazing platform permitted - as it made sound financial sense. The surge in milk supplies has been underpinned by strong grass growth in the south and east since the start of September.
However, the west and north have not been as fortunate, with heavy rainfall restricting growth and forcing the early housing of stock.
The lift in milk price is helping to maintain deliveries to processors, despite over 4,400 farmers applying to join the EU's milk supply reduction scheme.
This week has seen Kerry Group and Lakeland Dairies moved to a base of 26c/l for September milk. Meanwhile, Glanbia will pay 25c/l, plus an additional 1c/l support payment from Glanbia Co-op.
Dairygold has also increased its milk price by 1 c/L for September to pay a price of 26 c/L inclusive of a quality bonus of 0.5 c/L and VAT.