Several milk processors have now declared their prices for December supplies.

Lakeland Dairies was first to declare its hand, announcing on Friday that it would continue to pay a butter bonus of 1p/l on top of its base price, which held at 29p/l.

The additional 3p/l winter bonus puts its suppliers on an all-in base of 33p/l, a strong price given what others are now paying in NI, and the recent trends seen in commodity markets.

Glanbia Milk also announced its base price would hold again at 29.4p/l.

Including its year-round 0.6p/l “Fermanagh bonus” brings its suppliers to an all-in base price of 30p/l for December.

While there has been no move in the Glanbia price since September, the co-op has announced that it will extend to its NI supplier base the 1.05c/l bonus payment on all milk delivered from July to December.

After deducting VAT and converting to sterling, the bonus amounts to 0.88p/l. For a one million litre supplier, with a normal seasonal supply, this is an additional £3,980 in income, and will be paid in the December cheque.

Glanbia Milk made a similar payment back in September for all milk supplied during the first six months of 2017.

Price drop

The recent slump in commodity markets has started to filter through to a local level with various other processors announcing price cuts and, in some cases, the first reductions since March 2016.

Dale Farm is correcting its price by 1p/l, leaving the co-op on a base of 28.7p/l.

Applying its 0.3p/l loyalty bonus and 2p/l winter bonus, it puts suppliers on an all-in base of 31p/l for December.

Omagh-based Strathroy Dairies has made a similar move, with a 1p/l cut to its base price, bringing it to 29p/l plus its 1p/l winter bonus.

The reduction at Glanbia Cheese is 0.75p/l, taking the Magheralin-based processor to a base of 28.5p/l, but with a 2p/l winter bonus.

GDT

This week’s GDT saw a second successive positive outcome with the index price rising 4.9% to US $3,310/t. This follows a 2.2% increase at the first auction of 2018, after Fonterra cut volumes traded on the back of lower supply forecasts.

At the latest auction, butter prices rose 8.8% with cheddar up by 5.2%. Whole milk powder rose by 6.5% with skim rising 5.1%, albeit from a very low base.