For most of the processors, deciding the May monthly milk price was a case of holding what was paid out in April. While dairy commodity market signals were positive, and still are, co-op directors decided to hold rather than increase for the most part. It was a cautionary decision for directors until a vision for where markets would go post COVID-19 is established.
For most of the processors, deciding the May monthly milk price was a case of holding what was paid out in April.
While dairy commodity market signals were positive, and still are, co-op directors decided to hold rather than increase for the most part. It was a cautionary decision for directors until a vision for where markets would go post COVID-19 is established.
Everything that has gone on since those meetings would indicate a rise is on the cards for June.
The two processors that lifted milk price were rooted to the bottom of the April milk league.
These were the significant southern player Dairygold and the smaller Centenary Thurles outfit that sell most of their milk to Glanbia and Tipperary.
A lift in base price of 0.5c/l by Dairygold takes them off the bottom of the May monthly milk league table. That will go some way to pacify the Cork farmers around Michelstown and Mallow.
Centenary Thurles also lifted base milk price shy of 0.4c/l. That all means for May Glanbia are now rooted to the bottom of the table.
They are delivering well in 2020 so far
For the typical May milk cheque at standardised national average milk solids, it means a difference in the May milk cheque of €2,100 between the west Cork co-ops at the top and Glanbia at the bottom.
The rest of the big players continue to chase Aurivo, which is holding court in division two all on its own.
The westerners started in February in division one and have held division two for the last three months since then. They are delivering well in 2020 so far on the back of some good decisions to sell product forward pre-COVID.
Ornua’s Colin Kelly said markets are in reasonable shape, with the key drivers of dairy demand holding up while dry summer weather held back supply slightly. Positive powder and cheese prices moved the Ornua May PPI higher.
May butter, which traded at around €2,600/t, is now trading at €3,200/t, which is further helping to strengthen markets. The headwinds for later in the year could be sterling weakening and potential recession effects post-COVID-19.
Winners
Highest protein percentage: Aurivo @3.51%.Highest fat percentage: Tipp Co-op and Boherbue @ 3.93%.Highest combined fat and protein percentage? Boherbue Co-op @ 7.54%.Losers
Lowest fat percentage: Lakeland Dairies @ 3.73%.Lowest protein percentage: Bandon Co-op @ 3.35%. Read more
Farmers must protect milk price transparency
Aurivo holds for April to halt cuts
West Cork co-ops create 2020 milk price gap
This is a subscriber-only article
SHARING OPTIONS: