The old order is restored for August, with the four west Cork co-ops back at the top of the milk league after issuing a 3c/l base milk price increase for August. Lisavaird pips Drinagh at the post to reach the top spot.

This is after Lisavaird changing the penalty for volume from 3.7c/l to 3.54c/l, which effectively rewards farmers for delivering more watery milk to the Carbery plant at Ballineen, but it pushes it a bit higher up the price comparison league table.

The change in C value wasn’t put in last month but the cumulative column is now adjusted to reflect the change. The price paid by all four west co-ops includes 0.75c/l of the sustainability payment. The best of the rest is North Cork Creameries, which claims that spot as it is paying out 2.35c/l from its reserve fund.

Many suppliers are not happy that this is being included in the league, as it’s being paid out based on volumes delivered in 2021.

Take this away and the price being paid by the board of North Cork is under €6/kg MS, which would put it behind the price being paid by struggling Tipperary Co-op and firmly at the bottom of the league.

All of the co-ops lifted milk price for August by between 1.2c/l and 3c/l, which is a reflection of the heat that’s currently in the dairy markets at present, particularly in Europe where butter prices are soaring to new levels and cheese prices are also rising sharply.

If the intentions of the boards of Tipperary Co-op and Arrabawn Co-op are realised, we will have one less co-op in the milk league over the coming months as merger talks progress.

Bottom of league

Tipperary is once again at the bottom of the league paying 42.94c/l excluding VAT. The difference between that price and Arrabawn is 1.65c/l, which is worth €713 excluding VAT to the typical farmer supplying 10.5% of annual supply in August.

Tipperary Co-op is joined by Kerry and Dairygold in division three for August. Again, North Cork would be in division three for the last few months if it wasn’t for the fact that it is paying out the support fund. There is a difference of 1.83c/l excluding VAT between the average milk price in division one versus the average milk price in division three.

For the typical supplier, that’s a difference of over €960 excluding VAT in the August payment alone.

Lakeland and Arrabawn have dropped out of division one for August. While both increased milk price for August they were leapfrogged by the west Cork co-ops into division one.