For the second time this year, there has been an across-the-board price increase from milk processors, with the range of base prices rising 0.5p to 1p/l for September supplies.
Dale Farm continues to pay the highest base price with the co-op adding 0.75p/l for milk supplied last month.
Including the 0.3p/l loyalty bonus, suppliers are now on a starting price of 30.8p/l.
It is the highest base price paid for milk, outside of the months when winter bonuses apply, since June 2014 and the highest price paid by Dale Farm since April of the same year.
Elsewhere, the largest increase came from Glanbia Ireland/Fivemiletown. A 1p/l price rise brings its base to 30.5p/l.
Next is Aurivo, who announced a 0.75p/l increase which takes its base price to 30.25p/l, followed by Lakeland Dairies on a base of 30.1p/l after a 0.6p/l increase.
Strathroy added 0.5p/l to its September price, raising its base to 30p/l, with Glanbia Cheese going up 0.75p/l, leaving suppliers on a starting price of 29.75p/l.
See next week’s edition for a full analysis of prices in our monthly milk league.
With demand extending across multiple dairy products, the current uplift in price looks more sustainable than the likes of 2014 when it was driven by powder, or in 2017 when butter hit record prices.
The second GDT event for October ended with a 2.2% increase, keeping the price index at its highest level for the past seven years. Butter rose by 4.7%, cheddar went up 2.9%, while skim and whole milk powder both increased by 2.5% and 1.5% respectively.
The weekly Dutch auction also continues to see strong increases, with butter up a further €210/t to €4,910/t and whole milk powder (WMP) up €100/t to €3,500/t. In early July butter was at €3,850 and WMP at €3,160
However, despite the increases in commodities, resultant farmgate milk prices are struggling to keep pace with spiralling input costs.