Lakeland Dairies was first out with a December milk price, and after adding 0.5p/l to its base, it has encouraged some others to follow suit.

It is the first increase to base price that NI’s largest buyer of milk has applied since July 2018, and means that Lakeland suppliers are now on a base of 25p/l. But with the 3p/l winter bonus added in, adjustments for volume and quality will be made from an all-in price of 28p/l.

The co-op pointed to improved returns on milk powder as a key reason for the rise in milk price. It also raised its price south of the border, going up by 1c/l to 29.7c/l, excluding VAT.

Elsewhere, Strathroy is also up by 0.5p/l, putting its suppliers on a base of 25p/l for December, before a 1p/l winter bonus is added in.

Glanbia Milk/Fivemiletown also increased its December milk price by 0.5p/l to 25.25p/l, which includes its 0.6p/l year round bonus. Adding in the 1.5p/l winter bonus brings Glanbia Milk/Fivemiletown to 26.75p/l.

Dale Farm

However, Dale Farm announced on Wednesday that it was holding at a base of 24.55p/l (including the 0.3p/l loyalty payment), which is 26.55p/l when the winter bonus is added in.

That just leaves Glanbia Cheese and Aurivo yet to declare. After appointing a new CEO earlier this week, Aurivo is due to set its price early next week.

Fixed price

However, the west of Ireland-based processor has announced a new 12-month fixed price contract running from 1 January 2020 which guarantees a base of 26.5p/l.

Normal bonus payments on milk quality apply thereafter, with the exception of the winter bonus payment.

Farmers can commit 10% of their milk pool under the scheme, based on monthly production levels from January to December 2019.

This means Aurivo now has three fixed price contracts in place which includes a 12-month contract running from 1 October 2019 at a 27p/l base, and a 29p/l contract that expires in December 2020.

It is also understood that Aurivo has recently taken on two new suppliers with a combined 3m litres. Both previously supplied Lakeland.

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