We are aware that some within the dairy industry have raised questions about our milk league analysis.

For well over a decade, the monthly leagues have provided local farmers with an independent analysis of milk pricing across the main processors.

Given the time that goes into compiling the information, it is a significant cost to our business. However, we are happy to provide it as a service to our readers.

A particular issue seems to be our headline ‘650,000 litre league’ and the fact that we use official DAERA statistics from the same month in the previous year to make the comparisons.

[...] when we ask for milk quality results for producers under 1m litres, the average results are very similar across each company

Those statistics are an average across the entire NI milk pool. As some larger herds pushing yields probably produce milk with lower solids than those supplying under 1m litres, it is correct to say that the prices we publish in the 650,000 litre league are an underestimate in many situations.

But that applies equally across all processors, and when we ask for milk quality results for producers under 1m litres, the average results are very similar across each company.

As a result, we reject any suggestion that the current analysis is in any way unfair or inaccurate to one individual processor over another.

Included

We also want to make clear what is and is not included in our analysis. The over-riding principle is that to be included, any bonus, etc, must be paid to the vast majority of suppliers.

Prices are adjusted for butterfat, protein, lactose, TBC and SCC using each individual processors’ pricing mechanism. Volume bonuses are included where applicable, as are any additional premiums available to all suppliers. Transport costs are also deducted where applicable.

Excluded from the calculations is milk committed under fixed price contracts, as these are not taken up by the majority of suppliers and are not standardised in price and volume. Also excluded are the multitude of individual price deals for new entrants, farmers switching processors, etc.

Improved

We welcome any questions farmers might have about the analysis or suggestions for improvement. It is important to note that we have always received full cooperation from processors as we collate the information, and that level of transparency is unique to our dairy sector.

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