Milk processors in NI have now set their base price for June, with a significant 2.5p/litre gap emerging between top and bottom payers.

Among the last to declare were Glanbia Milk and Fivemiletown, who increased their base price by 1p/litre, which brings them to 27.5p/litre.

This includes their 0.6p/litre year-round supplier bonus and makes them the closest competitor to Dale Farm, who announced last week it was increasing its price by 1p/litre, bringing the co-op to an all-in price of 28.5p/litre.

Earlier this week, Glanbia Cheese followed suit with a 1p/litre price increase, which brings its base from 26p to 27p/litre. By Wednesday Aurivo was the only buyer yet to confirm a price, but is expected to add 0.5p/litre to its base, bringing it to 27p/litre.

LacPatrick has also increased its milk price for June by 0.5p/litre, which puts its suppliers on a base of 26.5p/litre.

This places LacPatrick on the same base price as its prospective new partner Lakeland, which was the first processor to declare, announcing that it was leaving its base unchanged on 26.5p/litre.

This leaves Omagh-based Strathroy Dairy, that has also decided to hold its price for June – which puts suppliers on a base of 26p/litre. There will be a full analysis of milk prices in next week’s monthly milk league.

Average

Meanwhile, the latest DAERA statistics show the farmgate milk price averaged 27.17p/litre during May, down from 27.42p/litre in April. However, the May milk price is 0.76p/litre higher than the corresponding month in 2017, when prices averaged 26.41p/litre.

For the year to date, milk prices have averaged 28.21p/litre compared with 26.21 p/litre for the same period last year. Milk production during May totalled 232m litres, an increase of 18m litres on April and 4m litres higher than May 2017.

GDT

Milk markets remain under some pressure after another negative outcome at this week’s GDT auction, the fourth negative result in succession.

A 1.7% fall in prices brought the index to US $3,222/t. Butter prices fell by 8.1% to $4,953/t, with cheddar prices down 3.3% to $3,596/t. In contrast, milk powders were up, with whole milk powder rising by 1.5% to $2,973/t and skim milk powder rising by 0.8% to $1,959/t.

Read more

Glanbia Cheese to build new cheese factory in Portlaoise