Arrabawn co-op raises milk price for July supplies

The board of Arrabawn Co-op met today and decided to raise the base milk price by 1c/L, a spokesperson confirmed to Agriland.

Arrabawn also announced that it is to pay its member suppliers a support of 0.5c/L bringing the milk price for July to 24.25c/L, including VAT.

Arrabawn co-op is the latest co-op to raise its milk price for July supplies of milk after Glanbia and Lakeland Dairies upped their milk prices earlier this week.

Glanbia announced that it will pay its member suppliers 23c/L for July manufacturing supplies of milk, a 1c/L rise on the June milk price.

This price is inclusive of a 2c/L Glanbia Co-operative Society support payment to its members.

Glanbia Ingredients Ireland (GII) increased its base price by 1c/L to 21c/L including VAT for manufacturing milk at 3.6% fat and 3.3% protein.

The Board of Glanbia Co-operative Society has decided to pay its members a support payment of 2c/L (including VAT) for July manufacturing and liquid milk supplies.

Earlier this week, Lakeland Dairies was the first processor out of the blocks to set the July milk price. The co-op increased its milk price by 1c/L for July, giving member suppliers 24c/L for supplies.

This reflects a slight improvement in dairy market returns and a Lakeland recognition of difficult farming weather, the spokesperson for the co-op said.

Poor profitability and cash flow difficulties on farms this year were also factors to the increase in milk price.

The milk price increases for July come after the Ornua PPI, the monthly indicator of market returns on dairy products sold by Ornua, rose earlier this week for the first time in 16 months.

The PPI rose to 81.8 points for July, up from the 81 points the index had in June.

The PPI had dropped significantly over the 14-month period from March 2015 to May 2015, from 101.2 points to 81 points.