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After many months of static or downward milk prices, processors in Northern Ireland have responded to improved commodity markets and increased prices by 1.25p to 1.5p/l for June supplies.
Irish Farmers Journal analysis shows that it is the first ‘across the board’ increase in prices for nearly two years, and it is necessary to go back to August 2017 for the last time that all base prices went up by more than 1p/l.
With farmers to also receive around 1.2p/l from the coronavirus support fund for June milk, the price rise is a welcome boost to farm incomes.
All processors, with the exception of Aurivo, have now declared a June price. The upward trend was set by Lakeland on Friday last, with a rise of 1.25p/l to a base of 24.25p/l.
On Monday, Dale Farm announced it was also adding 1.25p/l to its base, putting suppliers on 24.3p/l, once the 0.3p/l loyalty bonus is added in.
Glanbia Milk/Fivemiletown also raised its price by 1.25p/l, which when combined with its 0.6p/l year round bonus payment, puts it out in front on a base of 25p/l for June.
Both Strathroy and Glanbia Cheese announced they were applying a larger increase of 1.5p/l.
This brings the Omagh based company to 24.5p/l, while Glanbia Cheese moves up to 23.75p/l.
Red Tractor
Meanwhile, Lakeland Dairies has announced it will apply a 0.5p/l penalty from 1 September on all milk produced on farms that are not accredited under the Red Tractor Assurance scheme.
It is understood that 95% of Lakeland’s suppliers are signed up to the quality assurance scheme. Those yet to register are encouraged to do so as quickly as possible to avoid the penalty.
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