While there has been some downward pressure on milk contracts sold for the first quarter of 2018, it is worth noting that dairy markets are still considerably stronger than 12 months ago.

Base prices, plus winter bonuses, across all milk processors averaged 30.9p/ litre for October. This puts base prices 7p/l (30%) higher than the same month last year.

For a 1m litre producer supplying 70,000l during October, the higher base price would be worth an extra £4,900 in milk sales, which is significant.

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As outlined in Table 2, good quality milk prices were above the 33p/l mark, however, the number of suppliers meeting all the outlined criteria on good-quality milk will be relatively small.

With a butterfat at 4.12% and protein of 3.36%, the prices outlined for average quality would be much more reflective of those paid on October milk. The average price paid on average quality milk was still a very healthy 32.68p/l, and with a steady outlook for the remainder of the year, farmgate prices should hold at similar levels.

Rolling average

Tables A and B outline the average price paid to a 350,000 litre and 1 million litre supplier for good, average and below-average quality milk over the past 12 months from November 2016 to October 2017.

In Table A, Glanbia Milk and Fivemiletown continue to pay the highest milk price followed by Aurivo.

For average quality milk, there is no change at the top end of the table with the Glanbia Milk/Fivemiletown price on 28.05p/l.

One million litres

Based on the data provided in Table B, good-quality milk averages 29.35p/l, with average quality milk on 28.05p/l across all processors. Once again, Glanbia Milk and Fivemiletown paid the highest milk price on both good- and average-quality milk with a rolling 12-month price of 29.53p/l and 28.25p/l respectively.

Aurivo are tight on their heels, paying 29.51p/l, followed by Lakeland on 29.46p/l for good-quality milk. Dale Farm has paid the third highest price on average-quality milk over the past 12 months, followed by Glanbia Cheese.

Aurivo slipped to fifth on average-quality milk followed by Lakeland in sixth with LacPatrick filling the bottom two places.