Following on from a similar trend in 2018, milk prices in NI are running 2p to 3p/l below the EU monthly average this year. For 2019 to date, the milk price paid within the EU 28 member states converts to an average of 29.7p/l.
Over the same time period, milk prices within NI have averaged 27.23p/l, a difference of 2.47p/l. Based on a dairy farmer supplying 0.5m litres from January to June, producers in NI are down £12,350 in milk sales when compared to the EU average price on the same production volume.
Monthly comparison
For January, the average farm gate price paid across the EU member states was 35c/kg milk. Factoring in current exchange rates and converting from kg of milk to litres, the EU average converts to a sterling equivalent of approximately 30.3p/l.
In contrast, the average farm gate price in Northern Ireland was 27.92p/l for January, or 2.38p/l behind the EU average price. Since January, monthly milk prices have been on a downward trajectory within the EU and NI. During February, EU milk prices averaged 30.2p/l.
In NI, there was a bigger monthly price cut to 27.5p/l as several processors pulled base prices by 0.5p to 1p/l.
In addition to lower base prices, there is also a price correction where winter bonus payments no longer applied.
Farm gate milk prices fell to 29.7p/l across EU member states in March, with NI prices slipping to 27.16p/l.
NI processors again made price corrections of 0.2p to 0.5p/l during March with winter bonus payments also no longer applicable.
Since April, milk prices have recorded smaller price cuts month on month. For June, provisional reports for EU milk indicate that farm gate prices will remain unchanged from the May average of 29.2p/l.
While no official DAERA milk price is available for June, the average NI milk price based on the 650,000 litre league table is 25.49p/l. For a 1m litre producer of average quality milk, this price increases to 25.9p/l.
However, in both cases, the information suggests that the price gap to EU milk prices could be widening.
EU milk league
The most recent EU milk league compiles official prices from across member states on May milk. Across all 28 countries, prices averaged 33.8p/kg milk which converts to a sterling equivalent of 29.2p/l.
Prices range from a peak of 57.1c/kg in Cyprus to a low of 28.1c/kg in Lithuania, or 49.3p/l to 24.3p/l.
Of the main milk producing regions, Germany is placed fourth in the May league on 37.9c/kg, which converts to 32.7p/l.The Netherlands is in seventh place on 35.3c/kg, which converts to 30.5p/l, with France in eighth position on a sterling equivalent of 30.1p/l.
Ireland
Ireland is placed in 20th position on 31.5c/kg which converts to a sterling equivalent of 27.2p/l putting it ahead of the NI price of 26.59p/l. The NI price is included within the UK price of 27.89p/l, which is placed 21st within EU member states for May.
If the NI price of 26.59p/l was recorded as a standalone price it would be placed 22nd within this May league.
UK
Monthly milk prices in NI are also running below the UK average across the first five months of 2019. From January to May, UK milk prices have averaged 28.79p/l compared to the NI average of 27.23p/l for the same five-month period. Prices in Britain averaged 29.01p/l over this period, creating a price gap of 1.78p/l over the NI average, worth £8,900 if 0.5m litres has been produced for the year to date.
Milk prices in Britain averaged 29.91p/l in January, before slipping to 29.7p/l and 29.29p/l for February and March respectively. Prices fell further to 28.5p/l and 28.11p/l for April and May, maintaining a price gap of approximately 1.5p/l over NI prices.
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Following on from a similar trend in 2018, milk prices in NI are running 2p to 3p/l below the EU monthly average this year. For 2019 to date, the milk price paid within the EU 28 member states converts to an average of 29.7p/l.
Over the same time period, milk prices within NI have averaged 27.23p/l, a difference of 2.47p/l. Based on a dairy farmer supplying 0.5m litres from January to June, producers in NI are down £12,350 in milk sales when compared to the EU average price on the same production volume.
Monthly comparison
For January, the average farm gate price paid across the EU member states was 35c/kg milk. Factoring in current exchange rates and converting from kg of milk to litres, the EU average converts to a sterling equivalent of approximately 30.3p/l.
In contrast, the average farm gate price in Northern Ireland was 27.92p/l for January, or 2.38p/l behind the EU average price. Since January, monthly milk prices have been on a downward trajectory within the EU and NI. During February, EU milk prices averaged 30.2p/l.
In NI, there was a bigger monthly price cut to 27.5p/l as several processors pulled base prices by 0.5p to 1p/l.
In addition to lower base prices, there is also a price correction where winter bonus payments no longer applied.
Farm gate milk prices fell to 29.7p/l across EU member states in March, with NI prices slipping to 27.16p/l.
NI processors again made price corrections of 0.2p to 0.5p/l during March with winter bonus payments also no longer applicable.
Since April, milk prices have recorded smaller price cuts month on month. For June, provisional reports for EU milk indicate that farm gate prices will remain unchanged from the May average of 29.2p/l.
While no official DAERA milk price is available for June, the average NI milk price based on the 650,000 litre league table is 25.49p/l. For a 1m litre producer of average quality milk, this price increases to 25.9p/l.
However, in both cases, the information suggests that the price gap to EU milk prices could be widening.
EU milk league
The most recent EU milk league compiles official prices from across member states on May milk. Across all 28 countries, prices averaged 33.8p/kg milk which converts to a sterling equivalent of 29.2p/l.
Prices range from a peak of 57.1c/kg in Cyprus to a low of 28.1c/kg in Lithuania, or 49.3p/l to 24.3p/l.
Of the main milk producing regions, Germany is placed fourth in the May league on 37.9c/kg, which converts to 32.7p/l.The Netherlands is in seventh place on 35.3c/kg, which converts to 30.5p/l, with France in eighth position on a sterling equivalent of 30.1p/l.
Ireland
Ireland is placed in 20th position on 31.5c/kg which converts to a sterling equivalent of 27.2p/l putting it ahead of the NI price of 26.59p/l. The NI price is included within the UK price of 27.89p/l, which is placed 21st within EU member states for May.
If the NI price of 26.59p/l was recorded as a standalone price it would be placed 22nd within this May league.
UK
Monthly milk prices in NI are also running below the UK average across the first five months of 2019. From January to May, UK milk prices have averaged 28.79p/l compared to the NI average of 27.23p/l for the same five-month period. Prices in Britain averaged 29.01p/l over this period, creating a price gap of 1.78p/l over the NI average, worth £8,900 if 0.5m litres has been produced for the year to date.
Milk prices in Britain averaged 29.91p/l in January, before slipping to 29.7p/l and 29.29p/l for February and March respectively. Prices fell further to 28.5p/l and 28.11p/l for April and May, maintaining a price gap of approximately 1.5p/l over NI prices.
Read more
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Dairy markets: Friesland Campina raises June milk price
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