This is a subscriber-only article
All milk processors in NI have applied a cut to base prices for August supplies, with between 0.25 and 0.75p/l taken off when compared to the previous month.
Lakeland was the first processor to set a price, announcing a 0.75p/l cut, taking its base to 24.5p/l. After leading on price in July, that decision by Lakeland to cut for August effectively set the tone, and the others decided to follow suit.
Glanbia Cheese also applied a 0.75p/l reduction, and is now on a base of 24p/l which is the lowest base price paid by any processor since October 2016.
Dale Farm announced a cut of 0.5p/l on Monday which brought its base to 24.5p/l, but once the 0.3p/l loyalty bonus is included, members are working from a price of 24.8p/l.
Strathroy also came back 0.5p/l, putting suppliers of the Omagh-based processor on a base of 24.5p/l.
Just ahead is Glanbia Milk/Fivemiletown, which cut its August price by 0.25p/l, bringing its base to 24.75p/l, a price which includes the 0.6p/l year round bonus.
Aurivo was the last to declare, taking 0.5p/l off its base price to also leave it on 24.75p/l.
A full analysis on August milk pricing will be featured in next week’s milk league.
GDT
Despite milk prices being cut in NI, European dairy commodity prices continue to harden, which hopefully means that the bottom of the market has now been reached in NI. However, while uncertainty remains around Brexit, traders are reluctant to commit to longer term deals.
Meanwhile, at this week’s GDT auction, the index price rose by 2% to US $3,3303/t, making it the first positive result since 16 July.Butter rose by 2.7% to $4,129/t with cheddar up 0.4% to $3,846/t. Whole milk powder rose by 1.9% to $3,133/t, with skim milk powder up 3.4% to $2,599/t.
On enquiry, NI milk processors have confirmed there will be no changes to winter bonus payments this year.
Dale Farm and Glanbia Cheese will continue to pay an additional 2p/l on all milk supplied during October, November and December.
Lakeland will pay 3p/l on all milk during November and December. Aurivo will pay 2p/l during October and November, before reducing to 1p/l for December and January.
Strathroy will continue to pay 1p/l over the five-month period from October to February, while Glanbia Milk/Fivemiletown will pay its suppliers an additional 1.5p/l on all milk supplied over the four-month period from November to February.
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