Milk price has been gradually rising from November through January. On average, the milk price in November was €4.06c/kg milk solids, rising to €4.14c/kg MS in December and on average is €4.27c/kg MS (30.38 c/l) now in January.

In old money, that’s just short of a 2c/l increase over the three months. While milk supply nationally is miniscule for these three months, it sets a good base price for the real start of supply (February onwards).

There is very little difference between processors with 30 c/l ex-VAT except for Glanbia, Dairygold and Tipp Co-op at either end. Both Dairygold and Glanbia have an unconditional January payment and all January deliveries receive this money so it pushes both of them to the top of the January league.

Glanbia has changed how it pays for early- and late-season bonuses. Now every litre supplied from creamery milk suppliers in January and February gets the bonus with no conditions.

Before, the bonus was linked to minimum monthly supply levels relative to the farmer’s annual supply and a maximum June supply level. That has all been scrapped.

Unconditional bonuses are allowed into the monthly milk league. Conditional bonuses are not allowed into the league, so the Glanbia trading bonus is not included in the above price.

The Dairygold bonus structure is 3c/l for January, 2c/l for February and 1c/l plus VAT for March.

North Cork Co-op was at the bottom last month, but lifted milk price by over 2c/l for January to bring it back in with the rest.

While the dairy market fundamentals of supply and demand are relatively stable, there is the danger that logistical logjams could threaten the movement of dairy product around the world.

Milk supply in the North Island of New Zealand is drying up along with everything else. Some herds will start drying off the first third of the herd in the next 10 days. It is likely many in the North Island will finish up milking a month before expected dry date.

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