Aurivo has the honour of topping the May milk price league, closely followed by Kerry Group.
The top two was expected, given that neither had cut their base price for May, while others had adjusted downwards to varying degrees.
Aurivo paid €5.19 per kg of milk solids. This calculation is based on the national average milk solids of 3.39% protein and 3.94% butterfat.
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Boherbue, Drinagh, Bandon and Town of Monaghan also paid a division one price of over €5 per kg milk solids. Drinagh paid a 1c/litre price support on top of its fat and protein payments.
Division 2 milk processors all paid a May price of above €4.93 per kg milk solids. Large-scale processors Lakeland and Glanbia sit at the foot of the league, reflecting the fact that they cut their base price by 2 cent per litre including VAT. The result is a 7% gap between the top and bottom price.
For June, the gap will narrow once again as this week’s price cuts mean Aurivo and Kerry will drop back closer to the price currently paid by other processors. The good news is that Glanbia and the west Cork processors have decided to leave June price at the same level as May.
Wexford are no longer included in the league as they are now part of the Glanbia Ingredients Ireland (GIIL) organisation.
The price league is based on milk collected ex-farm at a somatic cell count of 300,000 and a TBC of 50,000.
The table is ranked on the average price paid per kilogramme of milk solids. The majority of processors now operate an “A + B – C” milk payment system, where A is the value of a kg of protein, B is the value of a kg of fat and C is a negative weighting applied on milk volume to reflect processing costs.
Arrabawn has a collection charge of 0.50c/litre in addition to the “C” component.
Aurivo has an SCC penalty of 0.14c/litre for milk with an SCC of between 250,000 and 300,000. It applies a further penalty of 0.14c/litre for milk between 300,001 and 400,000. Aurivo pays 0.44 to suppliers with a tank capacity for seven milkings.
Bandon pays a bonus of 0.5 for milk with SCC under 200,000.
Barryroe pays a bonus of 0.50 for milk with SCC under 200,000.
Centenary Thurles pays a bonus of 0.2c/l on milk with SCC below 200,000.
Dairygold operates a “balanced scorecard” whereby points are awarded for meeting TBC, SCC and other quality standards. A maximum of 0.4c/litre is paid to suppliers with at least 50 points. For our milk league, we include 0.4c/litre as it reflects a supplier at 300,000 SCC, 50,000 TBC and meeting all other standards. Dairygold suppliers saw 0.5c/litre of their milk price withheld in May as part of the revolving fund which is financing the co-op’s expansion.
Drinagh pays a bonus of 0.5c/litre for milk with SCC under 200,000.
Kerry Group pays a bonus of 0.2c/litre for milk with SCC under 200,000/ml. The IDB levy of 0.14 c/litre is not deducted.
Lakeland have a collection charge of 0.39c/litre in addition to their “C” charge on volume (-3.5c)
Lisavaird pay a bonus of 0.5c/litre for milk with SCC under 200,000.
Monaghan applies a collection charge of 0.23 c/litre.
Tipperary pays a bonus of 0.1c/litre for milk with SCC under 200,000.
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Aurivo has the honour of topping the May milk price league, closely followed by Kerry Group.
The top two was expected, given that neither had cut their base price for May, while others had adjusted downwards to varying degrees.
Aurivo paid €5.19 per kg of milk solids. This calculation is based on the national average milk solids of 3.39% protein and 3.94% butterfat.
Boherbue, Drinagh, Bandon and Town of Monaghan also paid a division one price of over €5 per kg milk solids. Drinagh paid a 1c/litre price support on top of its fat and protein payments.
Division 2 milk processors all paid a May price of above €4.93 per kg milk solids. Large-scale processors Lakeland and Glanbia sit at the foot of the league, reflecting the fact that they cut their base price by 2 cent per litre including VAT. The result is a 7% gap between the top and bottom price.
For June, the gap will narrow once again as this week’s price cuts mean Aurivo and Kerry will drop back closer to the price currently paid by other processors. The good news is that Glanbia and the west Cork processors have decided to leave June price at the same level as May.
Wexford are no longer included in the league as they are now part of the Glanbia Ingredients Ireland (GIIL) organisation.
The price league is based on milk collected ex-farm at a somatic cell count of 300,000 and a TBC of 50,000.
The table is ranked on the average price paid per kilogramme of milk solids. The majority of processors now operate an “A + B – C” milk payment system, where A is the value of a kg of protein, B is the value of a kg of fat and C is a negative weighting applied on milk volume to reflect processing costs.
Arrabawn has a collection charge of 0.50c/litre in addition to the “C” component.
Aurivo has an SCC penalty of 0.14c/litre for milk with an SCC of between 250,000 and 300,000. It applies a further penalty of 0.14c/litre for milk between 300,001 and 400,000. Aurivo pays 0.44 to suppliers with a tank capacity for seven milkings.
Bandon pays a bonus of 0.5 for milk with SCC under 200,000.
Barryroe pays a bonus of 0.50 for milk with SCC under 200,000.
Centenary Thurles pays a bonus of 0.2c/l on milk with SCC below 200,000.
Dairygold operates a “balanced scorecard” whereby points are awarded for meeting TBC, SCC and other quality standards. A maximum of 0.4c/litre is paid to suppliers with at least 50 points. For our milk league, we include 0.4c/litre as it reflects a supplier at 300,000 SCC, 50,000 TBC and meeting all other standards. Dairygold suppliers saw 0.5c/litre of their milk price withheld in May as part of the revolving fund which is financing the co-op’s expansion.
Drinagh pays a bonus of 0.5c/litre for milk with SCC under 200,000.
Kerry Group pays a bonus of 0.2c/litre for milk with SCC under 200,000/ml. The IDB levy of 0.14 c/litre is not deducted.
Lakeland have a collection charge of 0.39c/litre in addition to their “C” charge on volume (-3.5c)
Lisavaird pay a bonus of 0.5c/litre for milk with SCC under 200,000.
Monaghan applies a collection charge of 0.23 c/litre.
Tipperary pays a bonus of 0.1c/litre for milk with SCC under 200,000.
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