Milk prices have increased for December supplies, with some farmers seeing over 60c/l in their December milk cheques if you include bonuses, VAT and high milk solids.
Aurivo increased its December price by 1c/l bringing it to 37.88c/l excluding VAT, with the processor stating that the global demand for dairy remains strong.
Carbery announced an increase in price too, with a December base price of 38.2c/l, excluding VAT. This is a rise of 1.5c/l on November.
Dairygold also lifted its price by 1c/l to bring it to 38.25c/l, excluding VAT, while Kerry Group also lifted its price by 0.95c/l to 37.16c/l, excluding VAT.
Last week, Glanbia announced it would be increasing its December price to 39.77c/l, including a December bonus but excluding VAT.
Glanbia Ireland chair John Murphy said milk supplies remain moderate in some leading dairy regions, which is underpinning strong international prices for dairy ingredients. Lakeland Dairies set a price of 37.9c/l, a lift of 0.5c/l, for December milk.
ICMSA dairy chair Noel Murphy has said that ICMSA believes that all milk purchasers should be paying in excess of 40c/l for December milk as the dairy market data clearly shows that a price in excess of that figure is fully justified.
“The breaking of the 40c/l ceiling is indicative of a trend that we expect to continue through at least the first half of 2022,” he said.
Milk prices are set to continue to rise, with Rabobank noting that the peak milk price will be in the first quarter of 2022 or slightly later.