Arrabawn has warned that it will “continue to monitor markets” as it confirmed today (Friday, July 21) that it will pay a base milk price of 39.69c/L, including VAT for June.
The Co. Tipperary-headquartered co-op said the price, which is unchanged from May, is based on 3.3% protein and 3.6% butterfat for June milk supplies.
According to Arrabawn the price equates to 43.05c/L including VAT at EU standard constituents 3.4% protein and 4.2% butterfat.
Arrabawn’s average price for June, inclusive of VAT and bonuses is 41.26 c/L, compared to the average milk price for May, inclusive of VAT and bonuses which was 41.47 c/L.
The board of the co-op has stated that “dairy markets remain uncertain and that Arrabawn will continue to monitor markets in the coming weeks”.
Milk prices
Although the Co. Tipperary-headquartered co-op decided to hold its milk price for June supplies, the mood among the major processors this week on milk prices has been downbeat.
Tirlán yesterday (Thursday, July 21) said it will pay a total of 38.08 c/L,including VAT, for June creamery milk supplies.
The June price – based on 3.6% butterfat and 3.3% protein – is down 2c/L from its May price of 40.08c/L (including VAT).
The co-op blamed the uncertainty in global dairy markets for the cut in prices to farmers.
Earlier this week Carbery (Wednesday, July 19) reduced its base milk price for June by 1c/L.
It confirmed that it would “support the milk price from its stability fund” and is allocating a 3c/L support for June supplies.
Carbery also detailed that 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 of 40.2c/L, including VAT and 0.5c/L somatic cell count bonus.
Meanwhile, Dairygold cut its price by 2c/L to 38c/L, based on standard constituents of 3.3% protein and 3.6% butterfat, inclusive of sustainability and quality bonuses and VAT.
Earlier this week, Kerry Group confirmed that its price for June supplies would remain unchanged from the previous month at 37c/L.
Lakeland Dairies will also maintain its May position and pay a price of 37.35c/L for milk at 3.6% butterfat and 3.3% protein for June supplies in the Republic of Ireland.