Ireland exported 1.8 billion litres of milk to Britain last year

IRELAND exported the equivalent to 1.8 billion litres of milk to the UK last year, according to a paper presented to European Dairy Association recently.

The trade was valued at €870 million, with Ireland providing 31pc of the UK’s dairy imports in value terms, and 38pc in volume terms.

The paper by Brigitte

Misonne of DG Agri pointed out that the UK imports 4.8 billion litres of milk each year, with the trade valued at €2.8 billion.

Ireland is by far the biggest supplier of dairy produce to the British, with France and Germany second and third respectively.

French dairy exports are valued at €380 million, with German dairy exports to the UK worth €258 million.

Serious disruption of EU-UK trade in dairy produce, and food generally, has been forecast should Britain depart the EU without an agreement.

Ireland exports around 150,000 tonnes of cheese to the UK market last year, along with 37,000t of butter. The remainder of the trade is in fresh produce and powders.

The continuing uncertainty regarding Brexit has helped push on British famgate milk prices, with First Milk increasing its price for manufacturing milk to 28.69p/l (31.56c/l).

Meanwhile, Kerry Group has held its September milk price at 31c/l, while Dairygold has moved up 1c/l to 31.75c/l. Strathroy is paying 31.55c/l, while Barryroe is on 33.29c/l. Lakeland Dairies is paying 32c/l.

Stronger Chinese demand, particularly for whole milk powder (WMP), is driving the recent recovery in dairy market sentiment, with the New Zealand processor Fonterra raising its farmgate milk price range to $6.80/kg from $6.40/kg.

Gerald Quain of ICMSA said the recent recovery in international dairy markets was being reflected in fixed-price contracts to milk suppliers.

He said the most recent offering from Kerry Group for March to October 2021 is returning a base of 32c/l.

“This shows a belief that milk markets are fundamentally sound for the coming months and beyond,” Mr Quain said.

“This offering of 32c/l gives Kerry suppliers options to lock-in at that price, but also provides confidence to farmers supplying other milk processors on the market outlook,” he added.