Lakeland Dairies is the first processor to set a milk price for September and has raised its base by 0.6p/l to 30.1p/l.
It is the second month in succession that Lakeland has increased its base price, and outside of months when winter bonus payments apply, it is the highest base price paid by the co-op since May 2014.
The only other processor to set a price by Wednesday was Glanbia Ireland.
It went up by 1p/l, which puts its suppliers on a starting price of 30.5p/l for milk produced last month.
With commodity markets continuing to perform strongly, the latest milk price indicator (MPI) published by the UFU has increased by 0.25p to 33p/l.
While it is the highest MPI value since the summer of 2017, the index has consistently held above the 30p/l mark since late January 2021.
Farmers’ expectations for a higher price for their milk is justified by rising dairy commodity prices
In response, UFU dairy committee chair, Mervyn Gordon has highlighted the need for a “reflective and meaningful” milk price to counter the mounting financial pressure on farms due to rising input prices and labour shortages.
“Farmers’ expectations for a higher price for their milk is justified by rising dairy commodity prices and it’s only fair that farmers are able to benefit from these gains,” he said.
The latest input to see a jump in price is red diesel.
Quotes for delivery of 1,000 litres have gone up by 5p/l over the past week, and are 10p/l above the equivalent prices from late September.
Last October, diesel was trading around the 40p/l mark which means the cost of fuel is currently 75% higher year on year
It means that 1,000 litres costs between £720 and £745 with VAT included. Larger volumes will qualify for some price discounts.
Last October, diesel was trading around the 40p/l mark which means the cost of fuel is currently 75% higher year on year.
Price quotes for white diesel are typically 112p to 118p/l, depending on the volumes purchased and the distance on delivery.
The spike in fuel prices reflects the upward trend in crude oil prices, which comes on the back of the surge in demand for gas.