There are no changes to winter bonus payments made by most of the major milk processors in NI.
NI’s largest milk processor, Lakeland Dairies, has confirmed it will pay its usual 3p/l out-of-season payment across the four months from November to February. Omagh-based processor, Strathroy Dairies, also pays 3p/l over the same four months.
The remaining processors all start their winter bonuses on October milk. In the case of Dale Farm, it has kept its winter bonus unchanged at 2p/l for the three months from October to December.
Bolstered base price
However, for the last two years, the co-op has bolstered its base price to ensure suppliers receive the equivalent of a 3p/l additional payment from October through to January – that same scenario is to happen again this winter.
Leprino Foods revised its bonus last winter and that change has been retained, with suppliers receiving a 3p/l payment across the four months from October through to January.
The other two processors pay bonuses across five months. Aurivo pay a 2p/l bonus in October, January and February, with a 3p/l payment in November and December.
That leaves Tirlán, who had the highest payout last winter, with suppliers receiving 3p/l in the five months from October to February. It is the only company to change its payments this year, with the December and January bonuses rising to 3.5p/l.
Income
For a typical NI farmer producing 750,000l annually and with a supply pattern in line with the NI average, there are more litres produced in February than in October, so Lakeland and Strathroy have slightly higher total winter bonus payouts than Dale Farm and Leprino. However, the differences are small, at £7,262 versus £7,161.
The Aurivo payout might extend to five months, but the total is similar at £7,213.
With the highest payments, Tirlán is ahead of the others at £9,560, which is up from a total of £8,930 last winter.
Prices of dairy commodities were all unchanged at the weekly Dutch Dairy Board auction on Wednesday.
Subdued
The market for European butter remains very subdued, with reports suggesting there is plenty of stock available. On Wednesday, prices held at €3,720/t, which is down by around €300/t on what was being paid in September.
With little demand to make butter, local processors report it has also negatively impacted the price of cream. Analysts at the Agriculture and Horticulture Development Board report UK bulk cream prices have fallen sharply during October, from over £1,700/t to prices in the mid to high £1,300s.
However, powder remains strong, with whole milk powder unchanged at Wednesday’s Dutch auction at €3,810/t and skim milk powder remaining at a four-year high of €3,690/t.
