A further round of April cuts in base milk prices has been offset by “fodder relief” payments for some which has widened the gap between the top and bottom milk payers.
For the April milk cheque there is now a difference of €2,400 between the top and bottom of the league. For one month’s supply as cows near peak, that is a very significant difference.
In terms of milk solids, it means the west Cork co-ops are paying €4.60/kg MS down to €4.15/kg MS for those in the bottom division. In old money, that’s a difference of over 3 c/l between the top and the bottom.
West Cork processor Carbery held March milk price by dipping into a stability fund and subsequently the west Cork co-ops all held milk price to the farmer. This leaves them sitting pretty at the top of the table as we head into the big milk months.
The other significant move in the April milk league is the LacPatrick top-up of 1.75c/l not long after it significantly cut February milk price and didn’t support it. It could signal they sold some assets to fund the milk price and try and keep pace with neighbouring co-ops or that positive market signals are beginning to seep through already.
LacPatrick would have purchased a lot of milk over the winter months ahead of market prices and that is partly why they are in the position they are in today.
Glanbia
Glanbia Co-op supported the Glanbia price by 1.9c/l ex-VAT but that still only brings the price to €4.11 /kg MS and as a result they are at the foot of the milk league.
The April top-ups to base prices will be very welcome to farmers as they pay for extra spring costs and it might just be enough to give international markets a chance to recover as they have been doing over the last number of weeks.