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The June lift in milk prices has seen a €10m cash injection for 17,000 milk suppliers.
The hikes will instil confidence in a sector that was conditioned into expecting lower milk prices when processors started talking down prices in February and March.
Most of the processors lifted June prices by at least 1c/l (0.13c/kg MS) to bring average prices up from 28c/l to 29c/l excluding VAT at 3.3% protein and 3.6% fat (see the June monthly milk league on page 22).
This week, the Global Dairy Trade auction steadied after an 8% rise in early July. On average, this week’s result was down 0.7%. Cheddar and whole milk powder prices were up but butter was down 5%.
The fallout from the recent changes announced to Ornua’s purchasing price index (PPI) continues, with some of the processors claiming the assumed processing charge is not high enough at 7c/l.
The farmers suggest the need for an industry formula to show what is driving the price up, so that it can come down in a few years when bank repayments on investments are less. The new PPI is set to come into play in August for the July PPI. On the liquid milk front, we understand the Aldi contract was signed up late last week, with the same processors successful as previously.
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