A number of local dairy processors have now declared their milk price for April, with cuts of 0.5p/l to 1p/l implemented by some key buyers as supplies increase toward peak production in May.

Lakeland Dairies was first to declare its price on Friday of last week, deducting 0.5p/l, to effectively leave suppliers on a price of 26.5p/l for April.

Within this price, Lakeland is officially paying a base of 25p/l, which is unchanged from March.

However, the co-op has reduced its weather-related support payment from 2p/l to 1.5p/l for April.

Dale Farm will pay its suppliers a base of 27.5p/l for April milk which includes the co-op’s 0.3p/l loyalty bonus.

Strong base price

While this represents a cut of 0.5p/l from March, it is still a strong base price in the current market.

Strathroy has cut its April price by 1p/l, putting suppliers of the Omagh-based processor on a base of 26p/l.

Suppliers of Glanbia Milk and Fivemiletown will welcome the decision to hold their April price, keeping them on an all-in price of 26.5p/l when the 0.6p/l year-round bonus included.

This leaves Aurivo, Glanbia Cheese and LacPatrick still to declare their April milk price. Aurivo and Glanbia Cheese are expected to announce their prices by today (Thursday).

LacPatrick’s board is due to meet next week, with milk pricing a key issue, after the co-op cut its base to 25p/l in March.

Britain

With milk production in Britain since 1 April, down by 25m litres on the same period in 2017, and a lower peak supply forecasted for May, several milk buyers have reversed their original decision to cut base price for May. In addition, higher prices are expected to come in June.

Dairy giant Müller is to increase its base price by 0.75p/l from 1 June, which will bring its liquid price to 26.75p/l.

Elsewhere, Grahams Dairies has decided to reverse its 0.5p/l price cut from 1 May.