A 0.5p/l increase has put Dale Farm ahead of the pack when it comes to September milk prices. The price increase means Northern Ireland’s largest milk processor paid suppliers from a base of 30.5p/l after the 0.3p/l loyalty bonus is added in.

While there were larger price increases from other processors, a number also held prices unchanged from August. It means Dale Farm’s 0.5p/l increase for September has left the co-op out in front in our monthly milk league. After factoring in milk quality payments and deducting transport costs, Dale Farm paid a farmgate price of 31.13p/l based on alternate-day collection. It is the second time this year it has topped the league table, after also being out in front back in March.

Along with increases to base price, the bonus payments on milk solids have also had a significant bearing on the final league positions this month. Both butterfat and protein tend to increase during autumn and early winter. For the September league, milk quality is set at 4.05% butterfat, 3.3% protein, 4.59% lactose with a TBC of 21 and SCC 220.

Price calculations in the monthly price league are based on a dairy farmer producing 650,000 litres annually with typical seasonal supply.

Unchanged

With the upward momentum in commodity markets starting to slow, second-placed Aurivo decided to leave its price unchanged at 30p/l for September. This price includes the same 1p/l bonus that was paid in August.

The inclusion of the bonus for September means that Aurivo is effectively on a 29p/l base. Once milk quality payments have been factored in, the west of Ireland-based processor paid 30.98p/l on alternate-day collection.

Rising two places to third place in the league table is Lakeland on 30.95p/l. Like Aurivo, the Lakeland price consists of a 29p/l base (unchanged from August) plus an additional 1p/l butter bonus paid on all milk supplied during the month.

The bonus comes from improved returns on contracts sold earlier this year.

Glanbia Milk and Fivemiletown are in joint fourth place with a milk price of 30.93p/l. Both processors raised their September base by 1p/l to 29.4p/l. The 0.6p/l year-round bonus puts suppliers on an all-in base of 30p/l.

A similar price rise brings Strathroy on to a 30p/l base and sees it climb three places to sixth position with its Red Tractor price of 30.55p/l. The Omagh-based processor is also in seventh place with its standard milk price of 30.35p/l.

However, both Glanbia Cheese and LacPatrick reacted to recent market signals by holding base price at 29.25p/l. After milk quality payments are factored in, Glanbia Cheese is in eighth position with a price of 30.28p/l. LacPatrick slips to the bottom of the table with its Red Tractor price on 30.2p/l and its standard price on 30p/l.