Lakeland Dairies has climbed back to the top of the milk league for February, having last been in that position in December 2017.

The co-op paid an average price of 29.15p/l for milk collected on alternate days last month.

With all processors reducing their February milk price by as much as 1p/l to 2.4p/l, there has been considerable movement in both directions within the league table.

It is based on the seasonal supply pattern for a dairy farmer producing 650,000 litres annually.

With production levels on an upward curve towards peak production in May, milk qualities have been reduced compared with the figures used in previous months.

For our calculations, milk qualities have been set at 4.01% butterfat, 3.2% protein, 4.72% lactose with 15 TBC and 177 SCC.

These figures are based on official DAERA milk quality statistics from the same month in 2017.

Position changes

Lakeland reclaimed top position in the league having slipped to third place in January. The co-op announced a 2p/l price cut to its base for milk supplied last month but paid an additional 1p/l hardship payment, which effectively left its suppliers on a base of 28p/l.

A higher payment on protein, and no transport charges on alternate-day milk collection, gives Lakeland an advantage over Glanbia Milk/Fivemiletown, who climb two places to joint second in the league.

They announced a 1p/l cut to their base putting them on a starting price of 28p/l, which includes the 0.6p/l Fermanagh bonus.

When milk quality payments are applied, Glanbia Milk/Fivemiletown are on a final price of 28.85p/l for alternate-day collection.

Strathroy Dairy is in fourth position with a Red Tractor price of 28.77p/l, 0.2p/l higher than its standard milk price in sixth position.

Aurivo is sandwiched between the Strathroy prices in fifth place, paying 28.76p/l, having been placed second in the previous month’s league.

Glanbia Cheese, at 28.41p/l, has edged just ahead of Dale Farm which is in eighth position with a price of 28.4p/l.

With a price cut of 2.4p/l to a base of 27p/l, LacPatrick has slipped from the top of the table in January, to the bottom in February.

Twelve-month average

Shown in Table A are rolling averages over the past 12 months for a 650,000-litre producer on either alternate-day or daily collection.

This table was first published last month, and is based on the price we calculate each month using our best estimate of the average milk quality across NI at the time.

Glanbia Milk/Fivemiletown continue to top the list, paying an average of 29.48p/l to a producer on alternate-day collection. They are followed by Lakeland with a 12-month average price of 29.28p/l, then Dale Farm on 29.15p/l.

The range in prices from top to bottom works out at just under 1p, which converts to a difference of £6,300 for a producer supplying 650,000 litres over the last year.

The data presented in the monthly milk leagues has been revised to better reflect milk production in NI.

The 350,000-litre league table is no longer published, with the 650,000- and one-million litre leagues retained, as they better represent annual production volumes for the majority of local dairy farmers.

Tables B and C are based on producers supplying one-million litres annually. In Table B, the various milk buyers are ranked on what was paid in February across the range of milk qualities outlined in Table 1.

Five processors paid over 30p/l for good quality milk during February. Lakeland paid the highest price with 30.54p/l, just 0.2p/l more than Aurivo on 30.34p/l.

Both processors pay a super hygiene bonus on milk below 10 TBC and 100 SCC. Lakeland pays 1p/l and Aurivo pays 0.8p/l. That bonus payment invariably puts both in a strong league position compared with other processors.

Average quality

However, on average quality milk, both Lakeland and Aurivo continue to hold on to the same table positons, as do Glanbia Milk/Fivemiletown in joint third.

Glanbia Cheese climbs to fifth with Dale Farm slipping to sixth place. Strathroy is in seventh place with LacPatrick bottom.

The price differential between good and average quality milk is worth 0.83p/l at Strathroy, rising to 1.31p/l at Aurivo and Lakeland.

Rolling average

For the 12-month period ending February 2017, as shown in Table C, Lakeland has moved back to the top of the league for good quality milk with a price of 31.14p/l.

Glanbia Milk/Fivemiletown have slipped from first to second place with a price of 31.06p/l on good quality milk.

Aurivo is in fourth place with Dale Farm in fifth.

Average quality

On average quality milk, which is probably more reflective of what happens on the majority of farms, Glanbia Milk/Fivemiletown retained first place on 29.79p/l. Lakeland slips to third as its 1p/l super hygiene bonus does not apply on average quality milk.

Dale Farm is in fourth, with Glanbia Cheese in fifth. Aurivo, LacPatrick and Strathroy fill the remaining places.

The range from top to bottom is just over 1p/l, so for a farmer supplying one million litres over the last 12 months, the difference works out at £10,600.