An improving market has allowed milk processors to leave base prices unchanged for September.
At the top end, Strathroy held on 30p/l, while Dale Farm remains on 30.55p/l, inclusive of the 0.3p/l loyalty bonus, but with milk collection charges to apply.
Lakeland Dairies left its base price at 27.25p/l, however, suppliers should note that under the co-op’s new milk pricing structure, volume bonuses increase by 50% during the final four months of the year.
Where a farmer produced 70,000l in September, the volume bonus increases from the standard 0.3p/l to 0.45p/l. Lakeland is also offering suppliers a £20/t discount on meal purchased through its feed business from November to February.
Leprino
Elsewhere, Leprino Foods remains on a base of 27p/l, which becomes 27.5p/l once a sustainability bonus is included.
September is the final month that Leprino’s 0.4p/l mozzarella bonus is paid at the lower base levels of 3.84% butterfat and 3.15% protein.
To qualify from October onwards, butterfat and protein must hit base levels of 4% and 3.2% respectively, at cell counts below 25 TBC and 200 SCC.
GDT
Dairy markets received a further boost this week, with a fourth successive increase at the GDT auction.
The second and final event for October recorded a healthy 4.3% increase. The price index has now recovered from a five-year low of 850 back in August, and currently stands at 994, which is similar to early June.
Butter rose by 2.9%, with skim and whole milk powder up 4.3% and 4.2%, respectively.
This week’s Dutch auction saw prices up for the third week running, with butter increasing €100 to €4,880/t and whole milk powder up €70 to €3,450/t.
However, processors point out that prices are recovering from a very low base, which limits the potential for any meaningful price rises in the coming months.
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