Glanbia Cheese has announced it is increasing its July price by 1p/l, bringing it to a base of 27.75p/l before adjustments for volume and milk quality.

This is the second month in succession that the Magheralin-based processor has increased price by 1p/l.

Strong forward sales and a positive market outlook has allowed the company to set an early milk price for July, much like Dale Farm did back in June.

Along with the 1p/l increase in base, Glanbia Cheese suppliers will again receive an additional 2p/l payable on milk delivered during October, November and December.

Provided there is no downturn in base price before then, suppliers should be realising a milk price in excess of 30p/l in the final quarter of 2017 once milk quality payments are factored in.

Highest since 2014

Meanwhile, the latest DAERA statistics highlight that farm-gate milk prices in NI averaged 27.1p/l for June, an increase of 0.71p/l on the average May price, making it the highest milk price recorded since August 2014, when farmers received an average of 27.32p/l.

The June price was 9.88p/l higher than the same month in June 2016, and across the first six months of 2017, milk prices have averaged 26.34p/l, compared with 18.05p/l for the same period last year.

For a one million-litre supplier with typical seasonal supply, the increased price is worth £7,500 to £8,000 in additional income each month.

Production

Milk production during June totalled 210m litres, an increase of six million litres on the same month last year, but down 19m litres on the record monthly figure realised in May 2017. Production during the first half of 2017 stands at 1.22bn litres, compared with 1.20bn litres last year, an increase of 20m litres or 1.6%.

Britain

More milk is also being produced in Britain, but the increases are slower than those seen in NI.

Production totalled 1.02bn litres during June, an increase of 19m litres compared with the same month last year, but production over the first six months of 7.34bn litres, is still marginally behind the first six months of 2016, which stood at 7.43bn litres.

The average June 2017 milk price in Britain was 26.68p/l, up 6.18p/l on last year, but for the first time this year, slightly behind the average monthly price recorded in NI of 27.1p/l.