NI’s two largest dairy processors have both announced increases in base prices for milk produced in April.

On Tuesday, Lakeland confirmed a 0.75p/l increase, taking its base to 29.6p/l. It is the third month in a row that the co-op has increased its starting point, with that price now the highest it has been since last October.

However, that April price is behind what is being paid by Dale Farm after the co-op announced a 1p/l increase to base and also an additional 1p/l “market support payment” on April milk. It takes the Dale Farm starting point to 31.3p/l once a 0.3p loyalty payment is included and before any adjustments for transport and milk quality.

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Uncertain

Sources in the trade continue to warn of uncertainty around future prices as global milk supply is strong. Powder markets have strengthened in recent weeks, helping to offset continued lower returns for butter.

That is reflected in the latest Dutch Dairy Board auction on Wednesday when European butter dropped a further €40/t to sit at €3,900/t – that price is down €800/t since early March and €3,300/t behind this time last year.

Whole milk powder was unchanged at €3,210/t, while skim milk powder was up another €100 to €2,980/t, which is its highest price since November 2022.