Milk processors have cut base prices for March, the third successive month of major price corrections.

Of those who have declared a price to date, most have opted for a 3.5p/l reduction.

Lakeland Dairies was first out, and a 3.5p/l correction reduces its starting price to 35p/l, which includes a 1.5p/l support payment on all litres.

Glanbia Cheese matched this price cut on Tuesday, leaving suppliers on a starting price of 34.5p/l. It is the first processor to dip below a base of 35p/l since February 2022.

Strathroy Dairy continues to set the pace with a base price of 37p/l. While the Omagh processor reduced its price by 3.5p/l, it also no longer pays a 1p/l winter bonus.

Dale Farm payment

Dale Farm is the only processor to apply a smaller price cut, with a 3p/l reduction taking its base to 36.05p/l.

However, on Monday, the co-op’s board decided to issue a 13th payment with immediate effect.

This will see members receive a 0.5p/l top-up on all litres supplied from 1 April 2022 to 31 March 2023. The 0.5p/l payment effectively leaves March base price at 36.55p/l.

Both Lakeland and Tirlán made a similar payment of 0.5p/l at the start of the year on all litres supplied in 2022.

Farmers suppling Dale Farm should also note that from 1 April, the incremental payments on butterfat and protein will change.

Butterfat will now be worth 0.028p/l for every 0.01% increment above a base of 3.91%, up from 0.025p/l payable from a base of 3.88%. Protein is now valued at 0.043p/l for every 0.01% increment above a base of 3.22%, up from 0.039p/l at a base of 3.2%.

GDT

Meanwhile, the second and final GDT event for April saw the price index rise by 3.2%, halting a run of four negative auctions.

While there were major gains for butter, skim milk powder and whole milk powder, the price index remains similar to November 2020 levels when local milk prices were around 30p/l.

Sources in the NI trade expect further price cuts in April, but there is uncertainty after that. The rise in TB levels combined with record prices for cull cows have sparked concerns about production in 2023. January output in NI was down 1.7% at 214.22m litres.

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