Last Friday Kerry announced it was increasing its milk price for May by 1c/l after other processors had pulled support payments. Lakeland cut its support payment and held its base price of 30.15c/l excluding VAT for May supplies. Glanbia cut its co-op top-up from 2c/l to 1c/l, meaning its farmers will receive 28.5c/l.

Carbery followed suit, cutting 1c/l from its support payment. Arrabawn, Dairygold and Lac Patrick pulled support payments, but Dairygold increased its base price by 1c/l.

Aurivo increased its base price by 0.5c/l, which is the first Aurivo base price increase since September. Following the large tender of SMP and butter this week, IFA’s Tom Phelan has called on milk processors to reflect the positive commodities trade with a strong milk price.

“The price reached by butter and SMP in the auction, in combination, would return an Irish milk price equivalent of 33.5c/l including VAT, after deduction of a nominal 5c/l processing cost,” Phelan said.

The ICMSA has called on processors to use the Ornua Purchase Price Index which it says “translates directly across to 31.4c/l and that is the benchmark that we would draw attention to now: who’s at that mark, who’s ‘north’ of it and whose ‘south’ of that price”.