NI’s largest milk processor, Lakeland Dairies, is the first out with an October milk price and has confirmed it will remain unchanged from the previous month.
That leaves the co-op at a base of 31.9p/l, inclusive of the 0.5p sustainability payment. Lakeland, along with Strathroy, are the only main processors which don’t pay a winter bonus on October milk, so they are likely to be behind the pace set by others. Both companies pay a 3p/l bonus from November to February.
Feed support
However, to help support suppliers over winter months, Lakeland has confirmed it will apply a rebate of £17/t on all retail dairy feed purchases made by its suppliers between December and January.
Ahead of other processors setting prices, the chair of the Ulster Farmers’ Union (UFU) dairy committee, Cyril Orr has said winter bonuses must not be used to disguise the need for a “meaningful and justified” increase in base prices.
He pointed out that dairy commodity prices have recovered since July, with the New Zealand Global Dairy Trade auction up 9.8% and Dutch prices for whole and skimmed milk powder rising 24.6% and 37.9% respectively over the period.
“A sustainable milk price is essential to allow farmers to cover rising costs, continue investing in their businesses and maintain future milk production,” said the UFU dairy chair.
At the Dutch auction on Wednesday, both butter and whole milk powder were unchanged at €3,750/t and €3,840/t respectively. Skim was up by another €40 to €3,750/t.
