Tag: milk production

Milk production in Ireland is expected to rise again this year.  Industry sources are estimating a further 5% increase to put annual production at 7.6 billion litres.  This will be a 40% rise in deliveries over the past 5 years.  Since the end of milk quotas, the dairy herd has increased by 350,000; these cows are now maturing and entering their prime production years and therefore ‘extra’ milk is expected.  Furthermore a 2% rise in cow numbers is forecast again this year.  Meanwhile, according to Teagasc economists, the milk price in Ireland is forecast to drop by 10% in 2018 as the butter price falls and due to ample intervention stocks.

The AHDB has said that GB milk production has the ‘underlying potential’ to reach a record high this spring; however, it doesn’t expect it to do so.  The main reason being the move from dairy to beef inseminations, back in 2015 when farmgate prices were particularly low.  In addition at the same time there was a reduction in the proportion of sexed semen used.  This means we are now seeing a reduction in the number of herd replacements coming through and in turn milk production is expected to take a hit.

Whilst the levy board acknowledges the milk to feed price ratio is at a record high level, farmgate reductions and a downturn in the wholesale markets at the back end of last year has seen dairy farmers less inclined to push for more production.