The prices paid to NI farmers for July milk are down across the board, with processors taking action early to reflect market returns into the autumn.

Lakeland Dairies was first out with a July price, taking its base down 0.5p/l to 39.3p/l. It also dropped an “unconditional bonus” of 0.5p/l, paid in May and June, so effectively it is a 1p/l cut to the starting point for suppliers.

Dale Farm is also down in price, with the co-op reducing its base by 0.5p/l, taking it to 40.3p/l, before transport charges are applied. These charges typically average around 0.3p/l each month.

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Leprino Foods is back 1p/l at a base of 38.25p/l, while Strathroy also came back 1p/l, leaving base at 39p/l.

Tirlán applied a 0.75p/l reduction, taking its base price to 39.15p/l. Aurivo was last to declare, cutting base price by 0.6p/l, which left it at 40.5p/l.

In most cases, base prices have been cut for two months in a row and when compared to the end of 2024, they are down by 1.5 to 2p/l. Sources in the trade point to improved global supplies and slightly softer demand, which has taken the edge off commodities. European butter prices have dipped below €7,000/t, with the price down over €200/t since mid-May.

However, upcoming winter bonus payments are also a factor, which are due to kick-in from October for a number of processors. Sources argue that if base prices were left unchanged, adding a 3p/l bonus would leave prices paid too far ahead of market returns. At the same time, no processor wants to be cutting base price in the same month that they pay a winter bonus.

See our milk league next week for a full analysis of July prices.