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Base milk prices continue to rise in NI, with all processors adding 1p to 2p/l for February supplies.
Tirlán applied the largest increase of 2p/l, which brings its base to 34.4p/l, including a 0.4p/l sustainability payment.
However, Tirlán also pays a 3p/l winter bonus for February, boosting its starting price to 37.4p/l, leaving the Republic of Ireland-based co-op almost 2p/l ahead of its nearest NI competitor.
Dale Farm increased its February base by 1p/l to 35.55p/l before transport charges are applied. The outlined price includes a 0.5p/l sustainability payment and 0.3p/l loyalty bonus.
A 1p/l increase by Strathroy puts its suppliers on a starting price of 35.5p/l, once a 1p/l winter bonus is factored in.
February is the final month that winter bonus payments are made by any processor in NI.
Elsewhere, Leprino Foods also opted for a 1p/l increase, which, combined with a 0.5p/l sustainability payment, brings its starting base to 34.25p/l.
Aurivo added 1.75p/l to its base, although the co-op’s 2p/l winter bonus drops off the February milk cheque.
That leaves Aurivo on a starting price of 34.06p/l, down 0.25p/l from Janaury.
Last week, Lakeland Dairies was the first processor to declare a price for February and set the overall tone, with a 1.25p/l increase to an all-in base of 34p/l.
Market returns
Base prices are averaging 35.3p/l for February and running above the milk price indicator (MPI) published by the Ulster Farmers’ Union.
The MPI tracks commodity prices within dairy markets and uses the data to forecast farm gate milk prices.
Since December 2023, the MPI has been hovering above the 35p/l mark, before factoring in deductions for milk collection and a processor margin.
GDT
Global dairy markets remain finely balanced, with the latest New Zealand GDT auction down 2.8%, following on from a 2.3% reduction at the start of March. The biggest price falls were seen in milk powders, with skim down 4.8% and whole milk powder down 4.2%.
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