All milk processors, with the exception of Strathroy, have opted for a 5p/l cut to base milk prices for January supplies.

The trend was started last week by Lakeland Dairies, with base price cut to 42.5p/l. Dale Farm applied a similar reduction, dropping its base to 43.05p/l. Following on from NI’s two largest processors, Glanbia Cheese announced it was reducing its base to 42p/l. With its 2p/l winter bonus not applying in January, it is effectively a 7p/l reduction when compared to December.

Aurivo is on a base of 41.5p/l for January. However, the west of Ireland processor pays a 2p/l winter bonus on milk delivered last month, putting its suppliers on a starting price of 43.5p/l. Tirlán is also down 5p/l to a starting price of 43.65p/l which includes a 1.5p/l winter bonus.

This leaves Strathroy out in front on base price after it opted for a 2p/l reduction. The Omagh based processor is on a starting price of 45.5p/l, which includes a 1p/l winter bonus.

There will be a full analysis of January price trends in the NI milk league next week.

Commodities

Meanwhile, at the weekly Dutch Dairy Board (DDB) auction, there were some positive trends with butter up €150 to €4,750/t. It is the third week in a row that butter price has increased, although it is still down nearly €2,500/t on September 2022, and €1,200/t below its price this time last year. Skim milk powder (SMP) also recorded its third successive price increase, rising €70 to €2,570/t. Whole milk powder (WMP) price was unchanged.

In contrast, the New Zealand GDT recorded a 1.5% drop in index price. While butter and cheddar saw prices increasing, SMP and WMP fell by 2.4% and 2% respectively.

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