September milk cheques got a boost as all of the co-ops and processors increased prices by between 1.43c/l and 2.6c/l excluding VAT. It’s interesting to note that some of the smallest price increases came to those at the bottom of league, with Tipperary and Dairygold increasing by 1.43c/l and 2.15c/l, respectively.

Aurivo’s price increase of 1.9c/l excluding VAT was also below the trend for September price increases. Tirlán’s price rise of 2.6c/l was the highest, which puts it and Centenary at the top of division two for September.

Dairygold can point to the fact that the Irish Farmers Journal league doesn’t include the full payment for its sustainability scheme or quality bonus structure. However, it does include 80% of this payment and it is worth pointing out that farmers in these sustainability schemes have to hand over money in order to get money back in the milk payment.

Payments for the Kerry sustainability scheme haven’t been included here either as they aren’t linked to milk volumes or milk prices which, on the face of it, is a more accurate way to run a sustainability programme.

Kerry says that its sustainability programme adds 0.95c/l excluding VAT to its milk price, but like Dairygold some of this is conditional on buying inputs from Kerry and some is returning money that farmers have spent to be part of the scheme.

How we best reflect these payments and milk quality payments in the Irish Farmers Journal monthly milk league is an area that we are going to revisit over the coming months.

There is no change to division one for September, with the four west Cork co-ops topping the league.

Lisavaird and Drinagh are slightly ahead of Barryroe and Bandon as they have lower penalties for the water or C component in the A+B-C pricing mechanism.

North Cork retains its position in division one by virtue of the fact that it is paying out 2.57c/l excluding VAT from its stability fund. Without this payment, the co-op would be towards the bottom of the league.

The contrasting positions of Arrabawn, Tirlán and Tipperary Co-op are worth noting.

For a typical supplier with 100 cows, there is just €44 in the difference in the September milk payment between Tirlán and Arrabawn. However, there is €1,093 in the difference between Tirlán and Tipperary and €1,049 in the difference between Arrabawn and Tipperary.

If the merger between Tipperary and Arrabawn goes through, it will be interesting to watch the differential in price between the new entity and the rest, particularly with Tirlán, Arrabawn’s main rival for the Tipperary milk pool.