Income for dairy farmers down significantly so far this year

THE IFA have found that some dairy farmers’ income was down by almost €38,000 for the first half of 2026 compared to the same period last year, depending on the co-op they supplied.

An analysis of dairy farm revenues for the first six months of the year was done by the IFA’s National Dairy Committee, after the announcements of June milk prices from 12 dairy processors.

The analysis focused on a typical spring calving farm that would produce 500,000litres of milk annually and determined that dairy farmers have taken a hit of between €31,000 and nearly €38,000 on their income from the first half of the year when compared to 2025, dependent on their respective processors.

The Carbery co-ops were the market leader in the analysis undertaken, paying out €4,000 more to their suppliers than their closest rivals Dairygold and Aurivo.

“These figures are stark and show how big a cashflow impact the fall in milk price is having on dairy farms. What is even more concerning is it represents only half of the year,” said Galway IFA Dairy Representative Tony Colleran.

“With half the year gone, we are seeing differences in milk revenues of approximately €10,000 between the top and the bottom of the table. This difference is too great to be ignored.

“Co-ops should be looking to top the table rather than what we see as the quiet acceptance among processors that the West Cork co-ops own this spot.”

There has been a reduction in milk prices paid to suppliers nationwide of 10cent/litre since last August, with global milk supply outstripping demand.

“Combined with higher feed costs due to the lengthy Spring and the recent prolonged dry spell, many dairy farms will be operating below the cost of production in 2026 unless we see a substantial recovery in milk prices,” said Colleran, from Moylough.