All processors have now set a base price for milk delivered in June, applying increases of 1.75p to 2.5p/l.

Glanbia Ireland/Fivemiletown is out in front with a starting price of 44.9p/l. This breaks down to a base price of 40.75p/l, plus a 0.4p/l sustainability bonus and a 3.75p/l agri-input support payment (AISP) payable on both conventional and fixed price scheme milk.

The AISP was first paid out in April in response to rising costs on farms.

Initially Glanbia set the AISP at 2.5p/l, rising to 3.75p/l in May. But rather than increase the AISP for June milk, the company has added 2p/l on to base price. It means the 2p/l increase for June is not payable on milk committed under Glanbia’s fixed price schemes.

Dale Farm

Behind Glanbia Ireland, Dale Farm has the second highest base following a 2p/l rise, which takes the co-op to a starting point of 44.05p/l once its 0.3p/l loyalty bonus is added in.

This is marginally ahead of Lakeland Dairies’ base of 44p/l after it announced a 2.5p/l increase last week. Aurivo is also on a base of 44p/l following an increase of 1.75p/l.

Strathroy opted for a 2.5p/l price increase, putting the Omagh based processor on a starting base of 43p/l. Glanbia Cheese is also on 43p/l after it announced a 2p/l increase for June.

Full analysis of June milk prices will be outlined in the NI milk league next week.

GDT

The second and final GDT event for July saw a 5% drop in the price index to 1,223, taking it back to levels recorded last October.

Prices averaged US $4,166/t and out of the last nine auctions, eight have recorded price falls.

In the latest auction, butter fell by 2.1% with cheddar down 2%. Whole milk powder dropped 8.6% with skim milk powder down 5.1%.

However, with global production in the second half of 2022 likely to be down 0.5% on last year, some analysts expect markets to harden again moving into the autumn.

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