Just days after announcing that it is adding 0.5p/l to its May milk price, Dale Farm has confirmed to its suppliers that prices for June will be up by a further 1p/l.

That takes the base price paid by Dale Farm in NI for June to 27p/l. Adding in an additional 0.3p/l loyalty bonus, means that suppliers will be working from a base of 27.3p/l before adjustments for quality and volume.

It is the second time in recent months that Dale Farm has given an early indication of price, having done something similar for milk supplied in April.

In a letter sent out to suppliers, Dale Farm chief executive Nick Whelan referred to improved dairy markets and forward sales book, confirming that the board took the decision to announce its June price now in order to help suppliers plan better.

“We will not be able to price forward on a regular basis, but I can reiterate to you, on behalf of your board and executive leadership team, that we will continue to pay you all that we can in milk price,” states Whelan in the letter.

Welcoming the increase, UFU dairy chair William Irvine encouraged other processors to follow suit without delay.

Meanwhile, for May prices, both Aurivo and LacPatrick have increased their base by 0.5p/l taking them to 26p/l and 25.5p/l, respectively, before adjustments for quality.

All other processors declared their May price last week. Lakeland went up by 0.5p/l to 25.5p/l. Glanbia Cheese also increased by 0.5p/l to 25.75p/l. Glanbia Milk and Fivemiletown followed suit bringing them to an all-in base price of 26p/l. Strathroy had the biggest price increase of 1p/l, bringing its May base price to 26p/l. We will have further analysis in next week’s May milk price league.

Auction

This week’s GDT auction ended with a slight drop of 0.8% in price, the first negative auction since 21 March.

The GDT price now stands at US $3,434/t. At the current exchange rate, this converts to an approximate farm-gate price of 29p/l to 30p/l.

Whole milk powder (WMP) accounted for 50% of product sold and fell by 3.3% to $3,022/t. Skim milk powder (SMP) made up 25% of sales and saw prices rise by 1.4% to $2,218/t. Butter increased by 2.9% to $5,768/t.

Pressure on milk powder followed through to this week’s Dutch auction. WMP prices fell by €20/t to €2,990/t, while SMP prices fell by €50/t to €1,950/t. This was the first drop in skim price since 19 April. Butter prices rose by €150/t to €5,750.