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Omagh-based Strathroy Dairy has applied the largest price increase across all processors, having opted to pay 2p/l more for milk supplied in July.
That increase brought its base to 39p/l, which is the highest price paid for NI milk since February 2023.
All local processors opted to increase base prices for July and similar to Strathroy, the respective starting prices paid by each processor are at an 18 month high point.
Dale Farm has the second highest base for July milk after a 0.5p/l rise which takes its starting price to 38.3p/l, including its 0.3p/l loyalty bonus.
Next up is Aurivo with a 1.4p/l increase leaving suppliers to the West of Ireland based processor on a starting price of 38.15p/l.
A 0.5p/l increase by Leprino Foods moved its starting base to 37.25p/l for July milk. That is just marginally behind the 37.3p/l base at Lakeland Dairies following a 1.5p/l price increase. Tirlán also opted for a 0.5p/l increase, lifting its base to 37.65p/l once the co-op’s sustainability premium is included. The co-op was the only processor in NI to hold milk price in June, however, over the last two months it has now increased its Republic of Ireland price by over 2.6c/l.
Positive price trends continue to develop within dairy commodity markets, with butter in particular, delivering strong returns that have facilitated the recent price increases.
Demand for fat is currently outstripping supply within UK and European markets, boosting butter prices to their highest value since September 2022.
Processors expect that trend to continue throughout the autumn, and with solid demand for powder, there is growing optimism for positive milk prices in the coming months.
Prices surge at GDT
Dairy markets received another boost at Tuesday’s New Zealand GDT auction with the price index jumping 5.5%, making it the biggest single increase for the event since March 2022.
It is also the third GDT event in succession to end with a price increase.
Over the last 24 auctions going back to September 2023, 18 have ended with a positive outcomes, albeit at more modest levels.
At the latest auction, whole milk powder had its biggest price increase for more than three years with a 7.2% rise to US $3,482. Skim milk powder rose by a healthy 4%, with mozzarella up 5% and butter increasing by 3.7%.
Similar increases are happening in European markets, with all commodities rising in price at the latest Dutch Dairy Board auction. Butter recorded the largest jump, rising €200 to €7,550/t.
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