Base milk prices are at their highest for over three years, with August prices up by 1.25p/litre to 2p/l, and around 10p/l ahead of the same month in 2016.

The biggest price increase comes from Aurivo, which has added 2p/l. This consists of a 1p/l increase to its base price which effectively rises to 29p/l along with a 1p/l bonus on all milk delivered during August, similar to the 1c/l bonus paid to its Republic of Ireland suppliers.

This effectively brings Aurivo’s NI suppliers on to a base of 30p/l before adjustments for quality and volume.

It is a price effectively matched by Dale Farm, which increased its base price by 1.5p/l, bringing it to a base of 29.7p/l. This becomes 30p/l once the 0.3p/l loyalty bonus is added in.

Earlier this week, LacPatrick announced it was increasing its base price by 1.25p/l taking its suppliers on to a base of 29.25p/l, which rises to 29.45p/l once the Red Tractor premium is applied.

Elsewhere, Glanbia Cheese has increased price by 1.5p/l, bringing it to a base price of 29.29p/l for August. Strathroy Dairies also added 1.5p/l to its price, putting its suppliers on a base of 29p/l.

Last week, Lakeland announced an increase of 1.5p/l, bringing the price to 29p/l for August, while Glanbia Milk and Fivemiletown increased by 1p/l, which also brings them to a 29p/l base after their 0.6p/l year-round bonus is added in.

GDT

This week’s GDT auction saw a small increase of 0.9% in the index price, which now stands at US $3,368/t.

At current exchange rates, this converts to an approximate milk price of 33p/l before applying any processing costs.

Once again, butterfat recorded prices increases as did whole milk powder, up 0.6%, while skimmed milk powder fell 1.2% to $1,920/t.