Midland Farmer - September 2023

September 2023
Production of milk increased
in EU in first half of 2023
A European Commission report shows that
the production of raw milk increased in the
EU by 0.8% in the first six months of this year.
The latest milk market situation report published
by the commission highlights that total
collections of milk in the EU also increased by
0.8%.
According to the report from January to
June the production of dairy products – with
the exception of whole milk powder (WMP) –
increased across the board in the EU.
Although WMP dropped by 2.7% the production
of cheese for example was up by 1.2%, butter
by 1.7% and skimmed milk powder by 3%
year on year in 2023.
But while collections may have increased
across the EU milk prices have not followed
the same trajectory with average prices falling
in the first six months of 2023 below corresponding
2022 prices.
According to Noel Murphy, chair of the Irish
Creamery Milk Suppliers’ Association
(ICMSA) dairy committee, the “direction of
travel” in relation to milk prices is a concern
for dairy farmers.
Murphy said the latest prices confirmed by
processors in Ireland for July supplies has left
many farmers “disillusioned”.
“We are in a very difficult space, farmers are
producing at a loss and the fact that demand is
so negative is not creating any confidence.
“Irish farmers are getting paid prices below
the EU average, we need to ask why that is happening
and find out if processors are just protecting
their own margins?” Murphy added.
He believes the key issue that needs to be
addressed urgently is one of supply and
demand.
“We hear a lot about sustainability issues
when it comes to dairy farmers these days –
and that is something farmers are very aware
Graph showing the change in milk prices throughout the EU for June 2022 and June 2023.
of but we also need to be looking at economic
sustainability because there are farmers who
are really in a bad position now.”
“There are farmers who have no choice but to
cancel planned investments – there are new
sheds and milking parlours that were planned
and are no longer getting built.”
“What we need is to look at how farmers can
be supported at this time,” Murphy added.
The ICMSA has put forward a proposal that
an EU supply reduction scheme is one way that
the current imbalance between supply and
demand could be addressed.
“We need the EU and the Irish government to
get on board with this, demand is negative but
supply is still there so we need to deal with
that,” he added.
MIDLAND FARMER
5
Straw Shortage
Must Drive Change
To Organics
Scheme
ICSA Organics chair Fergal Byrne has said
consideration must be given to changing the
Organics Scheme requirements around housing
winter cattle so that housing in existing
slatted sheds can be facilitated.
“We have lots of ambition when it comes to
targets for organic farming but there are barriers
to making that transition and these barriers
need to be addressed,” he said.
“For livestock farmers one of the biggest
barriers is the fact that cattle cannot housed
in slatted sheds and that straw must be used
as bedding. This is a real impediment for
many due to the scarcity of straw and massive
cost associated to converting yards and
sheds to suit the Organics Scheme.
Mr Byrne said the shortage of straw predicted
for later in the year needs to focus
minds on these challenges. “Weather conditions
have been very unfavourable leading to
lower yields, so we know straw is going to be
in short supply and it is likely to be expensive
too. We also know that many cattle and sheep
farmers are in dire straits financially due to
high input costs and relentless processor
price cuts so it makes sense to do everything
we can to make switching to organics that bit
more achievable.”
“While there are limitations on what we can
do because of EU regulations on organic production
there is the scope at a national level
to make these changes. We need more farmers
choosing to farm organically and removing
the obstacles that are preventing farmers
from switching must be a priority.”