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.

Last week, Kerry joined Glanbia Ireland and Lakeland Dairies in announcing its decision to up its milk price to 33c/L, including VAT, for June milk.

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.

Quain, who is the Chairperson of ICMSA’s Dairy Committee, welcomed the announcement from a number of processors that they intend to pay 33c/L, VAT inclusive, for June supplies.

However, this price could and should have been paid for milk manufactured in May, Quain said.