Arrabawn and Dairygold announce milk price increases
Both Arrabawn Co-op and Dairygold joined a growing list of processors who have decided to increase their milk prices for June supplies.
The board of Arrabawn confirmed a 1c/L increase for milk manufactured in June; its suppliers will receive a base price of 33.75c/L, including VAT.
A similar increase was announced last month for its May milk price; prior to this, Arrabawn – like many processors – had held its base price for three months in a row.
Dairygold’s board also decided to increase the price for milk supplied in the month of June by 1c/L.
This increase will bring its base milk price to 33.5c/L – including both VAT and a 0.5c/L quality bonus.
This represented an increase of 1c/L from each of the processors, when compared with the milk price they offered in the previous month.
Prior to announcing milk price increases – of 1c/L – last month for milk manufactured in May, these processors had held their base price at 31c/L for three months in a row.
Meanwhile, Ornua also announced an increase in its Purchase Price Index (PPI) for the month of June, with a value of 110% given late last week.
The PPI rose from 106.8% for the month of May; a jump of 3.2 percentage points. This is the second consecutive price increase from April’s value of 105%.
The decision by some processors to up their June milk prices to 33c/L has been described as “effectively a month late“ by the Irish Creamery Milk Suppliers Association’s (ICMSA) Gerald Quain.
However, this price could and should have been paid for milk manufactured in May, Quain said.