The majority of co-ops have increased the price they are paying to farmers for December milk. The pace of recovery in prices from the summer to the end of the year was rapid, with prices rising by nearly 30%. Last week, Dairygold increased by 1.5c/l and Lakeland increased by 1c/l (excluding VAT).

Glanbia Ingredients Ireland (GII) also increased by 1c/l but Glanbia withdrew the 1c/l co-op support payment meaning that there was no increase for co-op members on the November milk price.

Arrabawn increased by 1c/l as did Carbery and Aurivo, while Kerry decided to leave the November milk price unchanged for December.

IFA dairy committee chair Seán O’Leary said farmers are entitled to feel disappointed if their co-op did not increase price for December. “With global milk output continuing to fall back ... there is no reason for co-ops to hesitate in passing back the maximum price.”

Global auction

At Tuesday’s Global Dairy Trade (GDT) in New Zealand, prices rose by 0.6%. Butter prices were up 1.6%, cheddar was up 1.3% and anhydrous fats were up 3.7%. SMP and WMP prices fell by 1.6% and 0.1% respectively. Some 13,000t were offered at the auction.

Last week, the Ornua purchase price index (PPI) reached a 19-month high.

The PPI was 103.8 up from 99.4 in November. This equates to a farmgate price of 29.2c/l (excluding VAT).

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While most co-ops have again increased their milk price, there appears to be a slowdown in the recovery.