The board of Arrabawn Co-op has approved a 3.5c/L increase to its price for milk supplied in April, following its monthly meeting.
This brings its milk price to 50.21c/L, the business said.
Commenting on the milk price rise, Arrabawn chairperson Edward Carr said: “The dramatic increase in input costs is set to make this a very challenging year for suppliers and, indeed, processors.
“Arrabawn has responded by signing off this week at our board meeting on a 3.5c/L increase, which brings our milk price to a peak of 50.21c.
“This reflects positively the strength of dairy markets right now but is particularly welcome at a time when members are being met with significant increases in input costs,” Carr added.
Also at its monthly meeting, board members signed off on a 5c/L support for the processor’s fixed price schemes for the remainder of 2022.
This, together with other commitments, brings the support for fixed schemes to 6.5c, according to Arrabawn.
Less than 5% of the business’ milk pool is covered by fixed-price schemes, the business said.
The announcement by Arrabawn of a support for farmers in fixed milk price schemes follows on from a similar announcement by Kerry Group yesterday (Wednesday, May 19).
Kerry has offered a 5c/L subvention to milk suppliers in forward price schemes in 2022.
Agriland understands that the processor wrote to suppliers detailing the offer, which is based on constituents of 3.3% protein and 3.6% butterfat.
In order to avail of Kerry’s subvention, suppliers must commit milk volume to a 2023 forward price scheme – from March to October.
It is understood that the maximum allowable volume commitment is the total that each supplier has committed to Kerry’s forward price schemes this year.
The latest announcement of processor milk price is in line with milk price trends over the last number of months.
Also yesterday, Carbery Group announced an increase to its milk price for supplies in April.
The business said it would up its price by 3c/L.
If this decision is replicated across the four west Cork co-ops of Bandon, Barryroe, Drinagh and Lisavaird, this will result in an average price for April of 50.9c/L, Carbery said.