There are no changes to the make-up of the top division for February milk, with Centenary Thurles and Tirlán out in front at €7.43/kg MS – joined by Dairygold, which is paying €7.25/kg MS. However, the price being paid for milk has dropped for all three, as the level of out-of-season support fell in February compared to January. There is a huge gap between the top price and the bottom price for February milk, with over 73c/kg MS of a difference between Tirlán and Lakeland Dairies milk price. For a typical supplier sending in 4.3% of their milk in February, that’s a difference in milk payment of over €1,400 for February alone.
There are no changes to the make-up of the top division for February milk, with Centenary Thurles and Tirlán out in front at €7.43/kg MS – joined by Dairygold, which is paying €7.25/kg MS. However, the price being paid for milk has dropped for all three, as the level of out-of-season support fell in February compared to January.
There is a huge gap between the top price and the bottom price for February milk, with over 73c/kg MS of a difference between Tirlán and Lakeland Dairies milk price. For a typical supplier sending in 4.3% of their milk in February, that’s a difference in milk payment of over €1,400 for February alone.
On Lakeland Dairies, it announced a cut to its base milk price of 1c/l, but an increase in the early calving bonus of 1c/l. That might sound fair enough, but the sting in the tail for suppliers is that the early calving bonus is a flat rate payment, meaning no matter what percentage of fat and protein is in the milk, the supplier will only get paid 1c/l.
If Lakeland held the base price where it was, which is paid on an A+B-C, then suppliers with higher solids would get paid more. In other words, the co-op would have to pay out more. The average fat and protein in the milk delivered to Lakeland in February was 4.44% and 3.43% respectively, substantially higher than the base price in c/l – which is based on 3.60% fat and 3.30% protein. Joining Lakeland in division three are Boherbue and near neighbours, North Cork Creameries.
Kerry Dairy Ireland (KDI) reduced its price by 27c/kg MS for February. This is after the SCC bonus and the new sustainability bonus is factored in. The sustainability bonus won’t actually be paid out until next January, but we are including it here for consistency. It’s just the second time the board of KDI got to set milk price, so suppliers will be disappointed to see it cut.
Kerry is joined in division two by the four west Cork co-ops, as well as Aurivo and Arrabawn Tipperary. Both Arrabawn and the four west Cork co-ops are getting the benefit in the milk league of the inclusion of the SCC bonus for milk under 200,000 cells and they are also getting most of their sustainability payments included – with the exception of any payment that’s conditional on purchases within the co-op, mainly protected urea.
This is a subscriber-only article
SHARING OPTIONS: