Lakeland Dairies and Dale Farm are the first two processors to declare a price for milk supplied during May, with both opting for another reduction to base price.
Lakeland has dropped its 1.5p/l monthly input support payment, putting suppliers on a starting price of 30p/l.
The input support payment was introduced in August 2022 and has been paid on all litres, including milk supplied under fixed price contracts.
On Wednesday, Dale Farm opted for a 0.5p/l cut, putting suppliers on a base of 33.05p/l. This includes its 0.3p/l loyalty bonus, and although the outlined base is before deductions for transport, it is likely to leave the co-op over 2p/l ahead of Lakeland on price paid during the peak month of May.
The May 2023 base prices are the lowest starting prices paid by Lakeland and Dale Farm since August and September 2021 respectively.
MPI
Following last week’s GDT and Dutch Dairy Board auctions, the Ulster Farmers’ Union has issued a new milk price indicator (MPI) of 34.27p/l for NI, up 0.36p/l from mid-May.
It is the first time the MPI has recorded an increase since late September 2022 and reflects an ongoing, but modest recovery in Dutch butter and powder markets.
Meanwhile, DAERA statistics show that NI production totalled 233.5m litres in March 2023, down from 236.12m litres for the same month last year and 234m litres in March 2021. Quarter 1 milk production in 2023 is down 1% or 6m litres year on year.
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