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Lakeland Dairies is the first processor in NI to pay from a starting price above the 50p/l mark. While others have paid an ‘all-in’ price over 50p/l for high solids milk in recent months, base prices have fallen short of this threshold.
On Tuesday, Lakeland confirmed a price of 50.5p/l for milk delivered in November. This breaks down to a 46p/l base, which is then boosted by the 1.5p/l input support payment for the fourth consecutive month and the co-op’s traditional 3p/l winter bonus for November milk.
The co-op is also paying an additional one off payment in January of 0.5p/l on all litres supplied during 2022. In a statement, Lakeland said this payment reflects market conditions and returns in 2022, and is money originally set aside to cover the potential for “extreme energy costs” this year.
“Fortunately that worst case scenario has been avoided,” reads the Lakeland statement.
Strathroy
Elsewhere, Strathroy was the only other company able to confirm a price at the time of going to press. The Omagh-based processor is unchanged at a price of 47.5p/l once its winter bonus is added in.
A full analysis of November prices will be included in the NI milk league next week.
MPI
While farm gate returns look set to remain steady for the remainder of 2022, at last Thursday’s RUAS Winter Fair, dairy processors were warning suppliers of price falls through the first half of 2023, due to a downturn in commodity markets. This trend is also reflected by the milk price indicator (MPI) published by the UFU.
The latest MPI is down 1.15p/l to 42.15p/l and since late September it has fallen by just over 6p/l. Allowing for a processor margin and transport costs, the current MPI would point to a milk price around 38p/l in early spring.
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