With an unchanged base price of 25.5p/l for the third consecutive month, Dale Farm has claimed the top spot for the March milk league, rising two positions from the previous month’s league table.

While two other processors paid a base price of 25.5p/l, Dale Farm suppliers benefitted from the 0.3p/l loyalty bonus, putting them on a starting price of 25.8p/l before factoring in any additional payments on milk quality or monthly supply volume.

Prices in the March league are based on a 650,000-litre producer with seasonal supply. Milk quality is set at 4.09% butterfat, 3.29% protein, 4.62% lactose, TBC of 17 and SCC of 202.

Based on the outlined criteria, a Dale Farm supplier would have received a milk price of 26.42p/l for alternate-day collection, an increase of 0.12p/l on the previous month due to higher milk solids.

Notification

It is understood that Dale Farm has now written to its suppliers indicating that the base of 25.5p will also hold for milk supplied in April. That would mean the NI co-op has held its price steady since January 2017. It is still too early to speculate what will happen to price for milk supplied in May, but indications from milk processors are that returns are fairly flat at present.

Aurivo increase

However, in a move that will have surprised many, Aurivo announced late week that it was increasing its base price by 0.5p/l to 25.5p/l.

The price increase has taken the co-op up the table into second position, having been placed in eighth spot for the previous month. In an opposite move to Aurivo, LacPatrick cut its base price by 0.5p/l for March to 25p/l which has seen it slip from first place for the previous month.

When payments for milk quality are applied, LacPatrick paid 26.25p/l to producers supplying under its Red Tractor label, putting it in third position.

Indications are that LacPatrick has seen a significant increase in the number of suppliers who are now Red Tractor-assured, with estimates at close to 80% of their milk pool now meeting this standard.

In March, LacPatrick paid 26.15p/l to farmers supplying non Red Tractor milk.

Sandwiched between the two LacPatrick prices are Fivemiletown and Glanbia Milk in joint fourth position on 26.21p/l, up two places on the previous month. Their base prices remain unchanged in March, with their all-in base price of 25.5p/l including a 0.6p/l year-round bonus.

Glanbia Milk slipped two places to sixth position after holding its monthly base price at 25.25p/l for March, and paying an average price of 26.15p/l based on the criteria used in the milk league.

Lakeland is in eighth position with an average price of 26.04p/l, a slip of one position from the previous month. It held its base price at 25p/l for the third consecutive month.

Strathroy is placed at the bottom of the table despite having added 1p to its base. However, with a 1p winter bonus no longer applying, its price effectively held at 25p/l. When volume and quality top-ups are applied, the Omagh-based processor paid 25.82p/l for Red Tractor milk and 25.62p/l for standard milk.

The average price paid in the March league for all milk buyers is 26.11p/l, similar to 26.12p/l for the previous month.

Twelve-month rolling averages up by 0.7p/l

The rolling 12-month average milk price continues to increase, month on month, as processors manage to hold current prices at 25p/l or better.

While there was limited movement in monthly base prices, the rolling milk price has increased by approximately 0.7p/l for the 12-month period ending in March 2017.

With each passing month, the lower milk prices paid in the spring of 2016 drop out of the calculations.

In the 1m litre supply table (Table A), farmers supplying good-quality milk have seen their 12-month average to the end of March 2017 increase by 0.73p/l.

Good-quality milk now has a 12-month average price of 23.76p/l.

Lakeland is still in pole position with a 12-month average price of 23.99p/l followed by Glanbia Cheese on 23.82p/l.

LacPatrick is in third position for good-quality milk by paying a 12-month average price of 23.78p/l for Red Tractor milk. Its standard milk price is in eighth position.

For suppliers of average quality milk, Glanbia Cheese is still paying the best 12-month milk price at 22.74p/l followed by LacPatrick’s Red Tractor milk price of 22.52p/l.

There is a three-way tie for third position, with Glanbia Milk, Fivemiletown and Lakeland all paying an average 12-month price of 22.50p/l. Dale Farm is in sixth position for both good- and average-quality milk, with Aurivo in seventh. However, the north-west-based co-op continues to pay some of the strongest prices for milk of below-average quality, currently lying in second position for the 1m-litre producer.

In the 350,000-litre rolling average table, Fivemiletown and Glanbia Milk have the best price for good quality milk at 23.57p/l followed by Lakeland on 23.42p/l. Aurivo is in fourth position followed by Glanbia Cheese in fifth place with Dale Farm in sixth.

For average-quality milk, Fivemiletown and Glanbia Milk are again in first place with a 12-month average price of 22.3p/l, followed by Glanbia Cheese on 22.24p/l. Aurivo is in fourth position with Dale Farm in fifth, LacPatrick in sixth and Lakeland in seventh.