No changes to base prices for November milk

Milk processors in NI have left base prices unchanged for milk supplied in November.

Lakeland set the trend by holding at 24.5p/l, which becomes 27.5p/l once its 3p/l winter bonus is applied.

It puts NI’s largest milk processor ahead of the pack, with Aurivo its closest competitor after it held on 26.75p/l, a price which includes its 2p/l winter bonus payment.

Dale Farm held on 24.25p/l for November, after a 0.25p/l cut in October. Along with its 0.3p/l loyalty bonus and 2p/l winter bonus, it paid an all-in base of 26.55p/l for November.

Glanbia Milk/Fivemiletown is on 24.75p/l, inclusive of its 0.6p/l year-round supplier bonus. However, it now pays a 1.5p/l winter bonus for November, bringing its final base to 26.25p/l.

Strathroy held on 25.5p/l, including its 1p/l winter bonus, while Glanbia Cheese remains on 25.75p/l, inclusive of a 2p/l winter bonus. Full analysis on November milk pricing will feature in next week’s milk league.

New entrants

Meanwhile, there continues to be a significant interest among other farmers in converting to dairy, with around 50 farmers making the switch in the last year.

Lakeland took on 25 new businesses and indicates it is open for further applicants in 2020. It is understood that the co-op offers various incentives, ranging from a 2p/l bonus on top of base price, to financial assistance with milking equipment.

Glanbia Cheese acquired two new entrants in 2019, with two more expected to be operational in early January

Dale Farm took on 21 new entrants in 2019. The co-op introduced a scheme in 2018 that offered a 3p/l price bonus to new entrants, paid every month outside of peak supply in April to June. However, the co-op recently indicated that it is holding off on taking on additional suppliers for the time being.

Glanbia Cheese acquired two new entrants in 2019, with two more expected to be operational in early January. Aurivo, Glanbia Milk and Strathroy did not take on any new entrants in 2019.

Start

In general, new entrants typically start with 80 cows, averaging 7,500 litres/cow, so in total, it is an additional 30m litres of milk.

That is mainly offsetting the loss of production from suppliers retiring from the sector.

Dunlop to retire

The long-serving chairman of Dale Farm, Portadown farmer John Dunlop, is to step down from the role in the spring of 2020.

Dunlop has been chairman of the board since 2010, and is expected to be replaced by the current vice chair, Randalstown farmer, Fred Allen, who has held that position since April 2015.

GDT index falls

The GDT index fell by 5% at Tuesday’s auction after a sharp drop in milk powder prices.

Skim fell 6% to $2,870/t with whole milk powder down 7% to $3,100/t. Butter fell 2.4%, but cheddar increased by 1.7%.

Read more

Dairy prices drop sharply at latest GDT auction

Dairygold and Aurivo increase milk price for November