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The latest round of price increases puts the value of NI milk at its highest level since December 2013.
For milk supplied in November the increases range from 0.75p to 1p/l. It is the third consecutive month that prices have gone up across the board.
Lakeland Dairies was first to set a price for November. A 1p/l increase raised its base to 31.5p/l, which becomes 34.5p/l once the co-op’s 3p/l winter bonus is factored in.
Dale Farm opted for a 0.75p/l increase that brings its base to 32.55p/l. Adding in its 2p/l winter bonus, suppliers are on a starting price of 34.55p/l.
Strathroy also went up 1p/l, and with its 1p/l winter bonus
Glanbia Ireland/Fivemiletown also added 1p/l for November, bringing its base to 32.5p/l. A 1.5p/l winter bonus puts suppliers on a starting price of 34p/l.
Just behind is Glanbia Cheese after the Magheralin-based company added 1p to its base taking it to 31.25p/l, which effectively becomes 33.25p/l when a 2p/l winter bonus is included. Strathroy also went up 1p/l, and with its 1p/l winter bonus, the Omagh processor is paying a starting price of 32.5p/l for November. That leaves Aurivo as the only processor yet to set a price for November.
Soaring commodities
Meanwhile a positive outcome at the first GDT auction for December and upward price trends during last week’s Dutch Dairy Board (DDB) auction resulted in a 1.27p/l increase in the latest milk price indicator (MPI) from the Ulster Farmers’ Union.
The MPI now stands at a record 38.57p/l and has risen in value by 17% during the past two months. Allowing for a 3p/l margin on processor costs, the MPI points towards a farm gate milk price in the region of 35p/l during early spring.
Dutch auction
At this week’s DDB auction, there were further price gains for key commodities. Butter jumped by €300/t to €5,820, while skim milk powder rose €60 to €3,300/t. Whole milk powder recorded a €100 rise to €4,120/t.
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