Most of the big milk processors increased milk prices for January milk supplies over the last week, with Aurivo Co-op announcing on Wednesday an increase of 0.5c/l to bring its base price for January supplies to 30c/l, excluding VAT.

Dairygold increased its base milk price by 0.5c/l to 30.06c/l, excluding VAT, while Carbery increased its price by 1c/l for January 2020, to a price of 30.74c/l, excluding VAT.

Lakeland also increased its price by 0.5c/l, bringing the price to 30.18c/l, excluding VAT, but including a lactose bonus.

Last week, Glanbia set a base milk price of 29.41c/l, excluding VAT, a rise in base price of 1c/l. However, all Glanbia suppliers will receive to another 4.2 c/l ex VAT as a Glanbia Ireland profit share and early calving bonus.

Kerry announced it was holding its price at 29.8c/l, excluding VAT.

Coronavirus warning

The ongoing spread of the coronavirus and what impact it will have on Chinese production and consumption is starting to concern some.

Yesterday Kerry chief executive Edmond Scanlon suggested it might be later in the year before the real impact of coronovirus becomes apparent here, as most Irish processors don’t have new season product to send to China available right now.

Both Lakeland and Dairygold have issued warnings of the potential impact of coronavirus on dairy markets.

A Lakeland spokesperson said that sentiment in China has weakened as authorities there move to get a handle on the virus.

Dairygold cautioned that “the impact of the coronavirus has not been fully reflected in the market yet. Serious concerns prevail on its potential impact and the next two months will set the market tone”.

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