Most co-ops cut July milk price

All but one milk processor cut the price of milk for July supplies according to the Irish Farmers Journal monthly milk league.

Despite dropping milk price by 14c/kg MS (1c/l) the four west Cork co-ops retain their sole place in division one by paying an average price of €6.608/kg MS (47.21c/l excluding VAT).

By retaining its June milk price, Arrabawn Tipperary goes from the bottom of the league in June to the middle of division two for July.

Its milk price remains unchanged at €6.453/kg MS (46.49c/l excluding VAT).

This puts it ahead of Tirlán, but behind the price being paid by Aurivo and Kerry on the milk league.

In division three, paying the lowest milk prices are Lakeland Dairies at €6.396/kg MS (45.91c/l excluding VAT), Dairygold at €6.385/kg MS (45.57c/l excluding VAT) and at the bottom of the league North Cork Creameries paying €6.368/kg MS (45.46c/l excluding VAT).

There is a €1,250 excluding VAT difference in the typical milk payment for July between the highest paying co-op, Drinagh and the lowest paying co-op, North Cork.

On a year-to-date basis, the lowest paying co-op is Lakeland Dairies, with a cumulative milk payment of €181,199 excluding VAT based on a typical supply curve for a farmer supplying 45,000kg MS annually.

That’s a shortfall of €8,559 excluding VAT when compared to the cumulative milk price paid by the highest paying co-op, Drinagh.

The Lakeland price is over €4,700 excluding VAT behind the average cumulative payment on the milk league.

The milk price used in the milk league includes all unconditional payments and most of the SCC bonus payments.