Back in April 2025 the Dale Farm board announced it would be reviewing, on a quarterly basis, the value put on butterfat and protein within its payment system. The aim is to ensure the value put on components reflected returns achieved from the market.

In the last three months to June 2026, every 0.01% change in butterfat above or below a base of 3.95% has been valued by the co-op at 0.037p/l, with each 0.01% change in protein above a base of 3.24%, valued at 0.061p/l.

The latest update to Dale Farm pricing, applying over the next three months from July to September, sees each 0.01% change in butterfat reduced to 0.032p/l, with protein value increased to 0.067p/l.

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Markets

Writing to members in the latest edition of Dale Farm View, its CEO Nick Whelan noted how fat-related markets have been under pressure in the last year.

However, protein markets have helped the company mitigate those price reductions, with the likes of whey protein concentrate (WPC80) seeing “an unprecedented increase” in value over recent months and providing “a very important income stream for Dale Farm”.

Those high prices are due to very strong global demand due to increasing numbers of people on weight-loss drugs, who want to consume a high-protein diet.

In the last year, the price of WPC80 (a by-product in cheese production) has soared to over €25,000/t.

All indications are that it is not a short-term fad, and in his commentary, Whelan suggested that suppliers can expect further revisions to the Dale Farm payment model.

“Increased reward for protein in milk can also be expected over the coming year, while the butterfat portion of milk is likely to be worth less,” he wrote.

Others

Among the other companies who still offer suppliers the option of being paid using a traditional increment-based model, Leprino puts the highest value on butterfat and protein, with each 0.01% change valued at 0.035p and 0.065p/l respectively.

Aurivo currently values each 0.01% change in butterfat at 0.03p/l, with protein at 0.053p/l, while Strathroy is at 0.036p/l for butterfat and 0.048p/l for protein.

Effectively, when base levels are factored in, Aurivo is currently valuing the solids component of milk at just under 29p/l, with Strathroy just under 30p, while Leprino and Dale Farm are both valuing the solids in milk at over 34p/l.

Positive reaction to Tirlán pricing

A notable change to milk pricing since the start of the year is the decision by Tirlán in January to give a three-month commitment on price.

The co-op did the same again in March and in June, with a 31.7p base price in NI applying from June to August. According to the co-op, the feedback from suppliers has been “very positive”.

The three-month pricing by Tirlán is not quite the same as the system operated by milk processors in Britain, where farmers are notified of the price one month ahead.

Back in 2021, the Ulster Farmers’ Union called for an end to retrospective pricing in NI, arguing that it would improve transparency and help farmers manage cashflows.