As the GDT auction spits out lower and lower prices for 2016 milk supply, the fixed milk offerings from Irish co-ops look more and more attractive.

Table 1 shows the details of the base price at comparable solids (3.3% protein & 3.6% fat) for four of the big processors. It also shows the fixed price closer to the actual prices farmers will receive, based on including bonuses and milk solid improvements that most farmers have made.

A milk price over 33c/litre for a proportion of 2016 supply looks good as base prices look likely to be less than 25c/litre for the first few weeks of 2016 at the very least. The Dairygold base fixed price, excluding VAT, at 3.3% protein and 3.6% fat is 28.21c/litre.

In addition, assuming milk suppliers tick the milk quality box (0.5c/litre), include VAT (1.5 c/l) and assume a 3c/litre bonus because cows are delivering higher quality milk solids, then the actual realised price by Dairygold suppliers will be closer to 33.2c/litre. The Dairygold offering is the only fixed milk price scheme still open, the Glanbia latest fixed offering closed before Christmas, while the Kerry offering was much earlier in spring 2015.

Glanbia is writing to suppliers who applied directly but we understand the scheme is heavily oversubscribed.