Of the July milk prices available to date, the only major changes have come at Lakeland and Strathroy Dairies, which have both moved to close the gap to the leading price paid by Dale Farm.

Lakeland was first to announce a price, adding 1p to its base, taking it to 27.5p/litre That is still 1p/litre behind the base price of Dale Farm, which decided to hold at 28.5p/litre (this includes the 0.3p/litre loyalty bonus).

Charges

But with zero collection charges for alternate day collection at Lakeland, the difference in actual prices paid is probably now closer to 0.5p/litre.

The 27.5p/litre base price at Lakeland has been matched by Strathroy Dairies, which added 1.5p/litre to its price after holding last month, and Glanbia Milk/Fivemiletown which remains unchanged from June. Its price includes the 0.6p/litre year-round bonus.

Magheralin-based Glanbia Cheese also held, and will pay from a base of 27p/litre for July milk.

That means after a gap of 2.5p/litre in base prices emerged in June, the difference between top and bottom has moved to 1.5p/litre for July, with Aurivo and LacPatrick yet to declare.

Looking ahead, with higher concentrate and straw prices, producers are facing higher costs this winter, with breakeven prices of 28-30p/litre, and above. While milk buyers are optimistic that prices paid will at least hold, the market remains fairly tight, with no significant move upwards at present.

Much will depend on milk supply over the next few months, and whether drought-hit countries will be forced to dry cows early to save on winter feed.

Impact on milk supply

But as of yet, the dry conditions have not had a big impact on European milk supply.

The most recent figures for EU milk deliveries show that production is still up on 2017, although growth has slowed from around 2%, to only 0.2% in June.

UK daily milk deliveries for July and into early August are little changed from 2017.

In NI, the volume of milk produced over the first six months of 2018 is at a record high of 1.25bn litres. That is 2.4% ahead of 2017 and 4.2% ahead of 2016.

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