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NI milk processors have increased base prices for January supplies.
Dale Farm applied the biggest increase at 1p/l, bringing its starting price to 34.05p/l once its 0.3p/l loyalty bonus is included. The co-op’s 2p/l winter bonus is not payable on January milk, so effectively this base is 1p/l below its December starting price.
Elsewhere, Lakeland Dairies announced a 0.8p/l increase, putting its suppliers on a base of 32.7p/l.
Again, Lakeland’s 3p/l winter bonus is not paid on January milk, so this price is 2.2p/l below its December base.
However, Lakeland’s new payment model came into effect on 1 January and is reflected in the monthly milk cheque.
Lakeland pays an increment of 0.029p/l for fat and 0.056p/l on protein
Under the new arrangement, suppliers have selected a baseline year between 2018 and 2020. As of January, for every 0.01% increase in butterfat and protein over the reference year figures, Lakeland pays an increment of 0.029p/l for fat and 0.056p/l on protein. While every individual circumstance is different, it is understood the vast majority of Lakeland suppliers have benefited in the first month.
Highest base
The highest base price is from Glanbia Ireland/Fivemiletown, with suppliers on a starting price of 35.15p/l. That follows a 0.25p/l increase in base price and also includes a 0.4p/l sustainability bonus, as well as a 1.5p/l winter bonus.
Glanbia Cheese raised its base by 0.5p to 32.5p/l and like Dale Farm and Lakeland, its 2p/l winter bonus is not payable on January supplies.
Strathroy also opted for a 0.5p/l price increase. However, the Omagh-based processor does pay a 1p/l winter bonus for January. So all combined, suppliers are on a starting price of 33.5p/l.
Record price
With the New Zealand GDT auction up a further 4.2% on Tuesday, and significant gains for milk powder at Wednesday’s Dutch Dairy Board (DDB) auction, the UFU milk price indicator (MPI) jumped 0.97p/l to a record high of 43.05p/l.
They’re extremely frustrated and angry
UFU dairy committee chair Mervyn Gordon said there is growing concern among members around the gap between the MPI and actual prices paid: “The DDB report butter and skimmed milk powder prices rising 57% and 48% with mozzarella up 46% over the past six months, yet NI milk price is up just 12% during this period.
“We’ve been inundated by calls from members who are supplying various processors about the unfair price they’re getting for their milk.
“They’re extremely frustrated and angry. They want an explanation as to why the gap between the two is widening so substantially.”
The UFU has requested a meeting with dairy processors.
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