Rarely, if ever, have we seen such significant lifts in milk price at this time of the year. April milk price has been set in the last 10 days. However, as we near the end of May, milk supply on Irish farms is peaking and milk price continues to rise.
The Ornua PPI, which reflects what Ornua can get back from the open market, continues to surge ahead of the farmgate price, showing a 6.6c/l gap when we compare the average of this month’s league with the Ornua index.
It shows there is room for a further increase as markets continue on a bullish trend and supply restrictions still impact the world over. Grain prices continuing to rise will also hit those in confinement type systems of milk production hard.
The west Cork co-ops have now taken the lead in April, as the early season bonuses of some co-ops have been washed through the system at this stage.
The price we rank on doesn’t include the 0.5c/l bonus for milk under 200,000 SCC, which many milk suppliers in west Cork will get. Some co-ops have held base price but included a supplementary bonus, so that those on fixed milk price schemes can benefit.
More co-ops have kept it clean and just increased the fixed milk price. This obviously impacts on pay out to other suppliers or on co-op margins. Dairygold Co-op is strong on April price and is leading the pack ahead of Aurivo in the west.
Tipperary Co-op has taken a significant jump coming from the lower half of division three in the March league to get within shouting distance of division one.
Dairygold’s neighbours North Cork and Boherbue Co-op bring up the rear of the table for April. Boherbue Co-op is back on track this month after taking a break last month.