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There is increasing pressure on local milk processors to pass on higher returns to dairy producers over the next few months.
The latest UFU milk price indicator is the highest it has been for 26 months, and at 30.05p/l, it suggests prices should soon be averaging around the 28p/l mark (taking off 2p to cover transport and a processor margin).
The Dutch Dairy Board (DDB) auction was unchanged this week, consolidating gains made last week when both whole milk and skim milk powder rose by €30/t.
Skim milk powder (SMP) at the auction is at its highest level since July 2014, while whole milk powder (WMP) has hit its highest level since January 2017.
South of the Irish border, the Ornua Price Index is also on an upward curve.
The latest index for November rose to 106.6, or a milk price of 30.26p/l (ex VAT), the equivalent of around 29.88p/l.
With rolling average prices paid over the last 12 months around the 26 to 27p/l mark, the majority of producers are losing money.
Speaking at a breakfast event ahead of the Winter Fair, local dairy consultant Jason McMinn confirmed that his clients have been working on a breakeven milk price of 27.8p/l over the last year once all income (including direct payments) and costs are added in.
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