Processors facing flood of milk as supplies surge
Annual output set to increase by 150m litres on back of strong autumn grass growth
Surging milk production over the last two months has transformed output predictions for the year.
Supplies for October are running 20pc ahead of last year, and dairies predict that increased production will continue into December on the back of excellent grass growth and strong prices. A 2pc lift in total supplies for 2018 is now forecast.
The sharp recovery in supplies through the back end has totally changed the outlook for the year, with suggestions during the summer drought of a 1-2pc fall in milk output for 2018. However, this has now given way to projections of a 2pc growth in output.
Given that national milk supplies last year totalled 7.27 billion litres, a 2pc lift in production equates to an additional 150m litres.
Both Lakeland Dairies and Dairygold have reported a 20pc lift in October milk supplies, with the increases for September being 12pc and 8pc respectfully.
A spokesman for Lakelands said the co-op expected deliveries to “remain strong” for November-December.
Dairygold said the big lift in supplies last month relative to 2017 was skewed somewhat by the impact of Storm Ophelia on milk deliveries in October last year. However, the co-op is forecasting a 2pc lift in overall supplies this year.
Similar increases in milk production were reported by Kerry Group, Arrabawn and Glanbia.