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Milk processors in NI are setting their base prices for July supplies this week.
Lakeland Dairies was first to declare, announcing that it was holding at a base of 25.25p/l. However, the co-op took 0.5c/l off its price in the Republic of Ireland, taking it to 29.2c/l excl. VAT. With the euro moving from 90p to 92p over the last month, it potentially justifies that decision to hold in NI. Elsewhere, while others in NI might have contemplated a cut, the decision by Lakeland made that more difficult.
Both Dale Farm and Glanbia Cheese decided to hold. It means Dale Farm will pay from a base of 25.3p/l (a price which includes the 0.3p/l loyalty bonus) and Glanbia Cheese from a base of 24.75p/l. However, after having led on price over the last three months, Strathroy Dairies cut its base by 0.5p/l to 25p/l. In general, the mood among dairy companies is negative, with uncertainty growing around Brexit, and prices for various key commodities such as butter and cream coming under pressure. Since May, butter prices are down by 20%, with some local companies obtaining prices as low as €3,100/t. This time last year butter was trading at over €5,000/t.
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