Big increase in value of milk solids at Leprino

Magheralin-based Leprino Foods has set out a new payment structure for milk in NI, with significant extra weighting put on the value of butterfat and protein.

At present, the company pays farmers across bands of 0.05%, with butterfat base set at 3.80% to 3.84% and protein base at 3.15% to 3.19%. Each 0.05% increase in butterfat above base is worth 0.09p/l and each 0.05% increase in protein above base is worth 0.15p/l. Strathroy operates a similar system of banding.

However, Leprino is moving suppliers over to a 0.01% increment model used by the likes of Dale Farm.

The new Leprino base is being set at 3.93% butterfat, with each 0.01% incremental change above or below the butterfat base, valued at 0.035p/l. For protein, the new base is 3.23%, with each 0.01% change valued at 0.065p/l.

In simple terms, the new Leprino model effectively values milk solids at 34.75p/l. Under the existing model, solids are valued at less than 20p/l – in other words, it encourages farmers to drive volume, not solids.

As well as changing how it pays for butterfat and protein, Leprino is dropping its lactose payment.

It is the last dairy company in NI to still pay for lactose, although the actual rates are pretty negligible.

In addition, an adjustment is being made to the SCC bonus, which for milk under 200, increases from 0.2p to 0.4p/l. Most other processors pay 0.2 or 0.3p/l for SCC below 200.

Mozzarella bonus

There is also a significant change being made to the Leprino mozzarella bonus. Now in place for 7 years, it paid 0.4p/l for milk of at least 4% butterfat and 3.2% protein during winter months, dropping to 3.80% and 3.15% in summer months.

The new mozzarella bonus will pay 0.75p/l across all months where butterfat and protein are at least 4.08% and 3.26% respectively, with SCC below 200 and TBC under 25.

Additional

At the 2024 average for milk quality in NI (4.25% BF; 3.34% Prot; SCC187), the changes to be implemented by Leprino would add an additional 1.125p/l onto its milk price.

Suppliers to the company have the opting of switching over now, which means that the new payment system would apply to milk produced from 1 April onwards.

The alternative is to wait until 1 October. Leprino expects that most farmers will choose the 1 April date given that analysis suggests over 80% will benefit from the new payment structure.