With no winter bonus payments applicable for January supplies, both Dale Farm and Leprino Foods have increased base milk prices to keep pace with other NI processors.
In the case of Dale Farm, with a 2p/l winter bonus dropping off, the co-op added 2p/l onto base, to stay at an unchanged price of 44.8p/l inclusive of their loyalty bonus.
That increase comes as no surprise, as the co-op indicated last autumn it would support milk price in the first two months of the year, rather than extend winter bonuses into January and February.
The co-op has also confirmed that the average pay-out in January under its milk production realignment scheme was 0.52p/l.
This three-year scheme pays 4p/l for additional monthly litres over a reference volume in the six months from August to January.
Leprino Foods is the other processor who does not pay a winter bonus in January. With 4p/l dropping off, the Magheralin-based company decided to increase base price by 1.5p/l, taking it to 42.25p/l.
Other processors decided to hold January prices and in most cases it means that prices are unchanged over the last four months.
Strathroy remains on a starting price of 44p/l, inclusive of a 3p/l winter bonus, with Tirlán holding at 43.9p/l once its 3p/l winter bonus is added in.
Lakeland
The base price at Lakeland Dairies is also unchanged, with its 3p/l winter bonus now applicable in both January and February, leaving suppliers on a starting point of 43.8p/l.
The co-op has also confirmed it has received strong interest among suppliers to switch to an A+B-C payment model. Last May, the co-op offered suppliers the option of moving to solids based pricing from 1 January 2025, ahead of the model being implemented across all suppliers from 1 January 2026.
It is understood that close to 70% of Lakeland suppliers will be paid using A+B-C from the start of 2025.
SHARING OPTIONS: