Dairy farmers operating in Britain will welcome the announcement from several processors that there will be further increases to base prices from 1 August.

Dairy giant Muller will add 0.89p/litre to its price, bringing its standard liquid price to 28.88p/litre and follows a 1.25p/litre price increase from 1 July.

Glanbia Cheese is also increasing its base price to suppliers of its mozzarella plant in Wales. A 1p/litre increase brings its manufacturing base price to 29p/litre.

Higher solids

However, unlike its NI price, Glanbia’s price in Britain is set at much higher milk solids.

Elsewhere, Arla is also increasing its milk price, with the sterling equivalent of a 1cent/litre price rise across its European supply base.

This brings its British suppliers to a liquid milk price of 30.16p/litre, with manufacturing milk on 31.38p/litre. Organic milk is 40p/litre.

The processor has increased its base price in response to lower milk intakes in recent weeks, as sustained dry weather is reportedly affecting its suppliers.

Fall in demand for intervention stocks

The European Commission’s goal of selling the remaining stocks of milk powder from intervention stores by the end of 2018 looks unlikely to be realised. Sales of skim milk powder during June totalled just 2,400t compared with 23,532t in May. Prices were also lower at £1,004 to £1,071/t compared with £1,067 to £1,250/t paid for intervention stocks in May.