Prices up 10p since August 2016

For the first time since mid-2014, monthly milk prices have climbed above the 30p/l mark once adjustments for milk quality and volume are added in.

Across the month, base prices averaged 29.15p/l. Back in August 2016, base prices averaged 19.3p/l across all processors, with farmgate prices hovering just above the 20p/l mark, leaving farmers in a significant loss-making situation.

Differential

A 10p/l differential in milk price between August 2017 and August 2016 is worth an additional £8,500 this month to a 1m litre producer with a normal seasonal supply profile.

As outlined in Table 3, all milk processors paid over 30p/l to 1m litre producers supplying good-quality milk in August.

Based on the same table, five out of the eight processors paid more than 30p/l for average-quality milk. The average price across all processors was 30.14p/l.

Rolling average

For the 12-month period ending August 2017, prices are up by 0.8p/l compared with the 12-month period ending July 2017.

Table A outlines the 12-month rolling average prices paid to a 350,000l producer for either good, average or below average quality milk.

Good-quality milk averaged 27.57p/l across all processors. Aurivo has the highest 12-month rolling price at 27.95p/l. The company also paid the best price on average-quality milk over the last 12 months at 26.53p/l.

One million litres

Table B outlines the 12-month rolling prices paid to a 1m litre producer for good, average and below-average-quality milk.

For good-quality milk, prices averaged 27.96p/l across all processors. Once again, Aurivo paid the highest price with 28.23p/l. Lakeland paid the second highest price on good-quality milk with 28.09p/l, while Glanbia Cheese is in third place with a 12-month price of 28.03p/l.

The 12-month rolling price for average-quality milk is 26.67p/l across all processors. Glanbia Cheese is on top, paying the highest price of 26.93p/l. Aurivo slips to second place for average-quality milk with a price of 26.80p/l, while Dale Farm is in third place at 26.73p/l.

LacPatrick is in fourth place with its Red Tractor price followed by Lakeland in fifth position. Glanbia Milk and Fivemiletown are in joint sixth place, paying 26.55p/l over the past year.