The first co-ops to set prices for milk supplied in October have put 2p/l on to their prices.

Glanbia Cheese Red Tractor is up 2p/l to a base of 22.25p/l, while Glanbia Milk and Fivemiletown are up 2p to 21.90p/l. Lakeland was the first to set, also announcing a price rise of 2p/l taking its base for October milk to 22p/l.

With the Lakeland bonus of 3p/l is set to apply for November and December, the initial indications from the co-op are that the base is likely to remain unchanged for the rest of the year.

The annual general meeting of Dale Farm is tonight (Thursday), with a big crowd expected, and a lift in base prices due to be announced. When the increased loyalty bonus was added in last month, the Dale Farm September base was effectively 20.3p/l. Suppliers at Dale Farm, LacPatrick and Aurivo are all set to receive a winter bonus of 2p/l for October milk.

In the Republic of Ireland, Glanbia Ingredients Ireland (GII) has added 2c/l to October’s base milk price, taking it to 26.7c/l excluding VAT for members. At an exchange rate of €1 = 0.86p, it equates to a payment of around 23p/l.

The Lakeland price in the Republic of Ireland is up 1c to 25.6c/l excluding VAT. That equates to approximately 22p/l, the same as the price now applying in NI.

Meanwhile, there are reports that at least two co-ops in NI are trading milk into the spot market in England to avail of high prices there. With tight supplies, sources suggest that prices are now into the low 40s, although it should be remembered that the spot market only represents a small proportion of the milk actually traded.

While co-ops have been able to get milk into the market across the Irish Sea, it has proven more difficult for farmers looking to supply direct. It is understood that a milk trader looking to get milk across isn’t yet operational, as they wait to get potential suppliers Red Tractor-approved.

The additional 4p/litre for members at Dale Farm on extra litres above last year’s milk in October, November and December (with the bar set at 95.7% of a producers milk in the corresponding months last year) has got off to a good start. The extra money earned in October, if spread over all the litres purchased by Dale Farm in October, was the equivalent of 0.23p/l.

Of course, not all producers increased their milk supply. However, in October, over 40% of producers did show an increase above the same month last year. At the lower end, some earned only a few pounds extra while at the top end, a small number, who expanded substantially, earned over £1,000 extra.

The expansion seen in October will continue in November and in all likelihood will increase further in December. Payments for increases in November and December do not require the producer to have shown an increase in October.

This extra money for additional litres is on top of the winter bonus of 2p/l, which is now payable for October, as well as the usual November and December months.

A competitive milk price in recent months has meant Dale Farm has reached a steady state, and, for the first time ever, the society has no members with a notice submitted to leave.

This means that all members are in receipt of the loyalty bonus now set at 0.3p/l.