The recovery in milk prices, which started in June, has continued for September milk, with prices generally up by 1p/l or more above the August price.

Glanbia Milk, Fivemiletown and Lakeland have all announced increases of 1p/l, taking them to a base of 19.90p/l, 19.90p/l and 20p/l, respectively. LacPatrick is also up 1p to 20p/l, although it has effectively held milk price at 19p and brought forward a winter bonus of 1p/l.

Aurivo has increased by 1.25p taking its base to 20.25p/l. As highlighted in September, Glanbia Cheese has changed the price it declares to a Red Tractor price. Its September price includes an increase of 1p, plus a Red Tractor element of 0.5p, taking its base to 20.25p/l.

Loyalty bonus

At United/Dale farm, the increase is 0.3p and it has added an additional 0.2p to its loyalty bonus, taking it up to 0.3p, and, in effect increasing its price by 0.5p to 20.3p/l for September supplies. The loyalty bonus is earned by all but a few members.

The highest increase in prices is at Strathroy Dairies where the base price is up by 2p to 22p/l.

However, according to the Ulster Farmers’ Union (UFU), a 2p/l increase is the minimum that should be expected, given improved market returns and recent currency fluctuations. In a strongly worded statement this week, UFU president Barclay Bell described the actual increases as “derisory” and a “slap in the teeth” for dairy farmers.

He maintained that the UFU would now take a tougher line with processors. “We have attempted to work with them for the good of the industry – but I think our approach now needs to be more hostile and critical. It is clear the interests of farmers are well down their list of priorities,” he said.

Republic of Ireland

Prices in the Republic of Ireland for September are generally around 26c/litre, including its VAT refund of over 5%. Removing the VAT and converting from euros at 90p indicates a southern price in sterling terms of 22.2p or over 2p more than prices in NI. There are differences in the butterfat and protein levels at which base prices are set, but this accounts for only a small part of the difference.

On inquiry, a number of processors pointed out that markets are turning, but they are locked in at less favourable exchange rates, and in contracts agreed when markets were significantly behind where they are now. A more significant increase in milk price is expected for October supplies.

It is understood that the new chief executive at United Dairy Farmers Co-op, Nick Whelan, is to propose at its annual general meeting in November that the name of the co-op will change to Dale Farm Co-op Ltd.

The change in name has been talked about for a number of months, but it looks like it is finally happening after members responded positively to the proposal.

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Full coverage: Milk prices