The majority of dairy farmers will effectively receive the same milk price for March as they did in February, despite co-ops announcing cuts to base prices.
Lakeland reported a 2.5c/l cut its base milk price last Thursday, but it added a support payment of the same amount.
Glanbia Ireland announced a base price of 28.46c/l excluding VAT, which was a 2c/l cut and it also dropped the 1c/l support payment that went out on February milk.
However, Glanbia is paying a 3c/l top-up.
LacPatrick said it was cutting its milk price by 2.5c/l for March supplies in the Republic of Ireland, but did not offer any top-up.
On Tuesday, Kerry Group announced a 2c/l cut on February. However, it said that it’s paying an additional 1.5c/l on all milk supplied from 1 January 2018 to the end of March, excluding milk supplied under fixed milk price contracts.
Dairygold, Carbery Group and Arrabawn also announced 2c/l support payments for their suppliers.
Meanwhile, Aurivo cut its base price for March milk by 2.45c/l. Its suppliers receive an early calving payment of 1.48c/l including VAT.
The top-ups were welcomed by the IFA dairy chair Tom Phelan, but he said that “farmers will continue to need support from their co-ops over the coming months”.
ICMSA dairy chair Gerald Quain said: “Suppliers should be paid the maximum price for their milk and not be somehow strung along or kept afloat by special payments or bonuses.”
Average dairy prices rose by 2.7% at this week’s GDT auction in New Zealand (see page 76).
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