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A major talking point at this year’s RUAS Winter Fair is likely to be changes being implemented by processors to milk pricing in Northern Ireland (NI) in 2025.
Unlike the Republic of Ireland, where farmers are rewarded for producing more kilogrammes of fat and protein, milk pricing in NI traditionally incentivised yield over solids, with payments per litre and volume bonuses based on monthly and annual output of milk.
However, since April 2021, there has been a gradual shift towards incentivising higher solids, although the biggest changes are yet to come, with a number of NI processors moving to an A+B-C format in 2025.
Outlined below is a summary of how processors will pay for milk from January onwards. It is an increasingly complicated situation, with a range of payment systems and models in place.
Lakeland Dairies
As the biggest processor of NI milk, Lakeland’s decision in May 2024 to change to a solids-based model was a significant development, as the co-op handles 48% of the NI milk pool. From January 2025, Lakeland is offering two pricing models. The first is a continuation of the current model, but with a few tweaks. Butterfat will be paid at 0.034p/l for every 0.01% incremental gain above or below a base of 3.9%, up from the current 3.85% base.
Protein will be paid at 0.056p/l for every 0.01% increment from a 3.22% base, up from the current 3.19% base.
Option two
The second payment option allows farmers to voluntarily opt for an A+B-C model in January 2025, with base prices per litre quoted at 3.90% and 3.22% base for fat and protein.
In January 2026, all Lakeland suppliers automatically move to the A+B-C model, when base prices will be quoted from a 3.95% and 3.25% base for solids.
This differs from the industry standard bases of 3.6% butterfat and 3.3% protein used in the Republic of Ireland.
However, the biggest difference between both regions is that under the A+B-C model in NI, farmers will continue to receive a monthly volume bonus.
Other premiums relating to TBC and SCC also continue, as will sustainability incentives. The traditional 3p/l winter bonus paid by Lakeland in NI, will now be offered across four months, to include January and February.
Tirlán
From January 2025, all Tirlán suppliers move to an A+B-C model after a three-year period of transition.
Like Lakeland, farmers will continue to receive a volume bonus in addition to premiums for winter milk, TBC and SCC.
The main difference to Lakeland sees Tirlán quoting prices at a lower base of 3.88% butterfat and 3.23% protein.
Strathroy
Strathroy will also operate a dual pricing model similar to Lakeland from January 2025. Suppliers can opt for an A+B-C model, with a base of 3.95% for fat and 3.25% protein.
Again, all traditional top-up payments on volume, cell counts and winter bonuses will be applied as normal.
The alternative is to remain with the current model based on price increments above or below a monthly base. However, from January 2025, the value of each 0.01% butterfat rises from 0.018p/l to 0.03p/l, with the base increasing from 3.85% to 3.9%. Protein increases from 0.028p/l to 0.048p/l, with the base rising from 3.19% to 3.22%.
Come January 2026, butterfat rises further to 0.036p/l at a 3.95% base, while protein remains on 0.048p/l, but at a higher 3.25% base.
Dale Farm
Similar changes are being implemented at Dale Farm, although the NI farmer-owned co-op is not moving to A+B-C payments. From 1 April 2025, the co-op increases its protein payment from 0.048p/l to 0.062p/l, while butterfat rises from 0.031p to 0.038p/l. Base levels remain on 3.24% and 3.95% respectively.
Volume bonuses will also change, with the co-op keen to encourage existing suppliers to produce more milk.
Review
That leaves Aurivo and Leprino Foods as the two remaining, major milk processors in NI. Both are set to announce changes to how they will pay for milk in 2025, again with greater emphasis placed on solids.
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