February 2021 Dairy Newsletter

Milk Price; VAT Change; Milk Supply Agreement; Fertilizer, Feed & Milk Statements; Milk Text: Indicative Value; Spring gri Promotion; Health Certificate 2021...

22 February 2021

Milk Price

The milk price for the month of January has increased by 0.5 cent per litre to 34.05 cents per litre (154.79 cents per gallon) at 3.60% butterfat and 3.30% protein, including the Winter Somatic Cell Count (SCC) bonus of 0.88 cpl and VAT at 5.6%.

This includes 1.0 cent per litre milk price support from the stability fund.

The average price paid for the month is 38.34 cents per litre. This is based on the average butterfat of 4.40% and protein of 3.43%, including SCC bonus and VAT at 5.6%.

VAT Change

From the 1st of January 2021 the VAT rate has changed from 5.4% to 5.6%.

Milk Supply Agreement

All suppliers are asked to submit any outstanding milk supply agreements for milk supply from January 1st, 2021.

To execute the agreement, you must complete and sign ‘Schedule 1’ including the volume forecast on page 12 and return the entire agreement to The Central Office.

Please return your completed Milk Supply Agreement as soon as possible to avoid any unnecessary letters or phone calls.

Fertilizer, Feed & Milk Statements

Each milk supplier is receiving a summary of their purchases of feed and fertilizer from the Co-Op for 2020. These documents should be carefully filed for future use. This is the last year that feed and fertilizer statements will be posted out to all suppliers, instead they will be available online under your Drinagh online services login.

Annual milk and purchases statements are also available to all online users @ www.drinagh.com

Online login and MilkedIn App: If you wish to start accessing your Drinagh online services login or to set up the Milkedin App on your phone - please contact Darren Lynch or Tim Regan for assistance.

Milk Text: Indicative Value per KG Milk Solids

Milk Text
The total solids and an indicative price per kg are sent out by text to all milk suppliers after every collection (see above).

The indicative value per kg is calculated using the A+B-C formula and adding 5.6% VAT. The A+B-C formula uses the fat and protein for that specific collection to give an indicative value per Kg of milk solids. To get a gross price for the value of the milk in the tank on that day simply multiply the total solids by the indicative price per kg.

Example (from text pictured above): 209.1Kgs x €4.6 per kg = €961.86

Note: The indicative value ignores SCC bonus/ penalties, quality penalties and levies.

Total solids are calculated using the volume, butterfat and protein results for the milk collected on that particular date.

The total solids figure can be used to work out the production per cow per day in kgs milk solids.

Firstly, divide the total figure but the number of days milk that was in the tank – then divide this figure by the number of cows milked per day.

Example (from text pictured above):

Per day: Total Solids 209.1ks divided by 3 days = 69.70 Kgs per day

Per cow: 69.70 kgs per day divided by 41 cows = 1.7kg milk solids per cow per day.

Spring Agri Promotion

spring agri promotion

The Drinagh Spring Agri Promotion is finishing on the 27th March 2021.

The Spring Agri Promotional Flyer is included in this month’s accounts.

Health Certificate 2021

The 2021 health certificate is included in this month’s account. All suppliers are reminded that their signed 2020 health certificate should be submitted to the Society before recommencing milk supply.

Jack Nolan Webinar Presentation

Jack Nolan's presentation from the Spring Dairy Webinar is now available on the Drinagh Co-Operative YouTube channel at https://youtu.be/YynrKa7_TC0

Milk Recording

Cow Milk Production Information

The most important piece of performance data that can be collected is cow milk yield and quality (fat, protein & SCC). Milk recording enables you to track the best and worst producing cows in your herd. This helps to decide which cows are underperforming and suitable for culling. It will also identify the most productive cows in your system that are suitable for breeding top performing replacements.

Somatic Cell Count (SCC)

Regular milk recording will also track the SCC of each cow during the lactation. Identifying and managing problem cows early will help reduce SCC and avoid high SCC cows passing on infection low SCC cows.

Selective Dry Cow

The use of selective dry cow therapy and reducing the use of milking and dry cow tubes on farm will make milk recording a critical management tool. Milk recording will be required to show which cows have had low SCC levels during lactation and may not need dry cow tubes, but it will be equally as important to show which cows had a mastitis infection and need dry cow therapy to treat the infection. It is vitally important for any cow that had a high SCC during the lactation to receive a dry cow treatment in order to cure that infection if she will be kept on in the herd the following year.

The table below displays some of the key production differences between milk recording and non-milk recording herds in our area. Based on 2020 data - the most standout statistic is that herds milk recording are on average producing 48kg milk solids per cow more than herds that are not recording. At €4.80 per kg of solids this can be worth an extra €230 per cow per year.

Milk Recording Avg
Avg Herd Size Avg Herd EBI Avg SCC Avg Calving
Interval (days)
Avg 6 Week
Calving %
Yes 433 93 €126 140 382 68
No 385 67 €106 177 380 58
Average 403 77 €113 164 381 61

Munster Bovine offer milk recording services and are contactable at 022 43228.


  • Spring Dairy Promotion included in this month's accounts
  • Milk price for January has increased by 0.5 cent per litre