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NI dairy processors are set to come under renewed pressure to increase June milk prices after a 8.3% rise at this week’s GDT auction in New Zealand.
Tuesday’s event was the highest increase since November 2016, despite 20% more volume being traded than two weeks ago, and is the fourth successive auction with a positive outcome.
It brings the index price to US $3,197/t, which is on a par with levels last recorded in February 2020.
The big positive at Tuesday’s event was a 14% increase in the value of whole milk powder (WMP), which is now back at January 2020 levels.
Buyers were extremely active in securing short-term contracts, as WMP supplies are reportedly limited in New Zealand.
There were also significant increases for other key commodities that affect milk price. Skim milk powder (SMP) rose 3.5%, with a 3% rise in butter, and cheddar up 3.3%.
UK
In Britain, market analysts AHDB have revised their market price indicators with the Actual Milk Price Equivalent (AMPE) up 4.8p/l from May to 29.37p/l for June.
The AMPE reflects the factory-gate value of milk used for butter and SMP production, excluding the cost of transport to the dairy.
In addition, the Milk for Cheese Value Equivalent (MCVE) has also increased to 30.89p/l for June. Both the AMPE and MCVE are now higher than the equivalent values for June 2019. Back then, base milk prices in NI were generally around the 25p/l mark.
Across Britain, leading milk processors are generally holding liquid and manufacturing milk prices until at least 1 August.
Muller remains on a liquid price of 25.25p/l with Glanbia Cheese on a manufacturing price of 25p/l, although this is payable at higher base constituents than required in NI.
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