Several milk processors have announced their base price for July with further price increases on the previous month. The biggest price increase came from Dale Farm which raised its base price by 1.2p/l.

This brings NI’s largest dairy processor to a base of 28.5p/l when its 0.3p/l loyalty bonus is included, and before adjustments for quality and volume.

At 28.5p/l, Dale Farm is paying the highest base price available since mid-2014.

Other processors that have declared their July price include Lakeland, Glanbia Milk and Fivemiletown, Strathroy and Glanbia Cheese.

Lakeland increased its price by 1p/l, which brings its suppliers to a base of 27.5p/l before payments for milk quality and volume. Glanbia Milk and Fivemiletown followed suit with an increase of 1p/l which brings them to a base of 27.4p/l. However, this rises to an “all-in” base price of 28p/l when the 0.6p/l year-round supply bonus is applied.

Strathroy Dairy added 0.5p/l to its July price having previously increased its milk price by 1p/l in May and June. This brings the Omagh-based processor to a July base of 27.5p/l.

Last week, Glanbia Cheese announced a 1p/l increase to its base price, which will see it pay suppliers from a base of 27.75p/l.

Aurivo is due to meet today (Thursday) to decide on its July price, while LacPatrick is set to declare its price early next week.

LacPatrick is also expected to announce its new board members next week, finalising the recent changes to the governance structures within the co-op.

GDT

This week’s GDT milk auction recorded a slight drop of 0.4% on the overall price index which now stands at US $3,339/t. At the current exchange rate, this converts to an approximate farm-gate price of 30p/l to 31p/l when allowing for some level of processing costs.

Milk powders continue to dominate the auction with 50% of product sold being whole milk powder (WMP) and over 25% being skimmed milk powder (SMP).

The WMP price fell by 0.6% to $3,143/t but SMP increased by 0.3% to $1,968/t. Butter prices fell by 1.3% to $5,753/t.

Dutch auction

Butter prices fared much better at this week’s Dutch dairy auction, rising by €150/t to €6,650/t. There was no change to WMP which remains on €3,100/t but SMP fell by €20/t to €1,720/t.

MPI

The strong demand for dairy commodities is reflected in the most recent Ulster Farmers’ Union MPI of 32.1p/l.

UFU dairy chair William Irvine said that with the last three MPI figures averaging 31.74p/l, there is scope for milk processors to pay more to farmers.

“Even allowing for deductions, there is still a significant gap between what is being paid to farmers and what the market is returning,” said Irvine.