Dale Farm to increase winter bonus payment

The chief executive of Dale Farm, Nick Whelan confirmed to members attending the co-op’s AGM on Wednesday that the company will pay enhanced winter bonus payments this year.

For the five months from October to February, the winter bonus has been increased to 3p/l. It had been originally thought that the co-op was going to keep its existing model that pays 2p/l on all litres supplied from October to December.

Rather than increase winter premiums, the co-op had given assurances to members it would pay a competitive price in early 2025 compared to other processors, despite not have a winter bonus in place. Base prices in the low to mid 40p/l range have been projected by Dale Farm for the early part of 2025.

However, the latest decision to increase winter bonuses, effectively brings Dale Farm into line with competitors.

Rival companies have all announced increases to winter bonus payments in recent weeks. Lakeland and Strathroy will also pay 3p/l from November through to February, with Tirlán offering a winter bonus of 3p/l from October to February and Leprino Foods a 4p/l bonus from October to December.

Aurivo is the latest co-op to confirm an uplift, having previously paid a 2p/l bonus for all milk produced from October to January. That has now changed to 2p/l in October, rising to 3p/l during November and December, falling back to 2p/l for milk in January and February.

For the first time since January 2023, all milk processors in NI are now paying starting prices above 40p/l, with the final two co-ops announcing their September base prices in recent days.

Aurivo has raised its September base by 1.75p/l to 40.9p/l, while Tirlán raised its September price by 0.5p/l to a 40.15p/l base.

In the Republic of Ireland (ROI), the co-op increased its base by 2.62c/l to 46.72c/l, excluding VAT.

However, that price is payable on milk produced at a base of 3.6% butterfat and 3.3% protein. When adjusted to the same constituents, Tirlan’s NI base is reduced to 39.69p/l, which at current euro to sterling rates equates to a price of over 47c/l.

Last week, a 2p/l increase by Leprino Foods brought its base to 40.75p/l. Lakeland Dairies also opted for a 2p/l price boost and starts on 40.3p/l.

Strathroy raised its base by 1p to 41p/l, while Dale Farm was the only processor to hold for September, keeping its starting price on 41.3p/l. Full analysis in next week’s milk league.