August is traditionally the month when you start to see milk supplies fall off, but on average most of our processors are running 11% ahead of the same month last year. Processors are continuing to deliver what global markets are returning and most lifted July milk price by 0.14c/kg MS (1c/litre) to bring the average milk price to €4.60/kg MS (33c/l ex-VAT).

2017 is turning into a bumper year for processors and dairy farmers as output volumes and value increase while costs are stabilised with good grass supplies on farm as we head into the autumn.

July league

In general, the positive summer market signals continue for dairy commodities and processors reacted as predicted last month by increasing prices accordingly. Most have increased by at least 0.14c/kg MS (1c/l) for July.

The July league order at the top of the table remains relatively unchanged. However, Kerry have jumped off the bottom as they lifted 0.2c/kg MS (1.5c/l) for July.

This means one of the other heavyweights, Glanbia, remains rooted to the bottom of the table at €4.48/kg MS compared with the west Cork co-ops which are paying €4.75/kg MS, about 1.5c/litre in front.

The west Cork co-ops are out on top for July again and this price excludes the milk quality bonus (0.5c/l) that is available for top-quality milk (milk under 200,000 SCC) which over 70% of west Cork suppliers will get.

Arrabawn and Aurivo are top of the second division after a decent price rise from May ahead of big players Dairygold and Kerry. Lakeland continues to bring up the rear of division two and now near neighbours LacPatrick have jumped ahead of Lakeland as they lifted July price 0.2c/kg MS (1.5c/l).

On average, the price paid for July milk was €4.61/kg MS or approximately 32.9c/l ex-VAT at 3.3% protein and 3.6% fat.

Fat and protein ratios

Aurivo attempted to correct the imbalance in the value ratio of fat and protein. The July price increase went on the B (fat) value, bringing it from €4.35/kg to €4.60/kg fat. Lakeland also increased the fat value from €3.1/kg to €3.38.

Already some of the other Irish processors had changed their ratio to reflect this change in value over the last number of months, while some have not.

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