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The December milk league held steady except for Glanbia, who have a 2c/l bonus for December creamery milk supplies.
Including this pushes them out on top. Centenary Thurles follow suit as they sell most of their milk to Glanbia.
Lakeland will argue they have a 5c/l bonus that is also paid on December milk, but it is conditional on what is delivered earlier in year so it is not included in the monthly milk league.
The rest more or less hold the November positions. Farmers will see slightly better milk prices as the VAT change from 5.4% to 5.6% will increase price paid a shade.
Boherbue
Boherbue, the small north Cork Co-op, remains at the foot of the table. They have a 1 c/l feed bonus which suppliers get if they buy feed off the co-op. That means it is conditional so it is not included in this league.
My understanding was this was sold to Boherbue suppliers on the back of the fact that Boherbue were consistently paying over and beyond market returns. This looks not to be the case any more as they’ve been at the foot of this league for the last six months.
Global markets
Dairy markets have improved again over the last number of weeks. The GDT auction results have increased by over 16% cumulatively since mid-November, with the last auction a week ago up 4.8% on the previous result.
The GDT is a good gauge for Chinese activity in market and for whole milk powder prices which are up to almost $3,400/t.
So a Brexit deal, positive GDT results, very little product in stock and lower milk volumes from Germany and France have boosted early season sentiment. Milk suppliers will be looking to turn some of this sentiment into a lift in base milk price in early February for January milk supply.
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