Dale Farm has announced a 2p/L increase in its base producer milk price for November milk supplies. This brings the figure up to 32.55p/L
The new arrangements take effect immediately. This means that November milk supplies will benefit from both the new milk price and the 2p/L winter bonus.
Dale Farm cooperative is owned by 1,300 dairy farmers across Northern Ireland, England and Scotland.
Dale Farm CEO, Nick Whelan, has confirmed that international dairy markets are responding to a reduction in global milk output.
“We saw the first sign of recovery in fat markets three months ago. Powders and whey followed and it looks as if cheese is about to react in the same manner,” he stated.
“Dairy markets are very much supply/demand driven. Currently, world milk supplies are down year-on-year. All of this gives cause for a degree of measured optimism, looking forward.”
The other factor in the producer price equation relates to the bonuses that are available for enhanced milk quality.
“And this is a very positive news story,” Whelan added.
“The fat and protein levels within the milk produced by Dale Farm suppliers have never been higher. Our current rolling year average for milk fat is 4.23%; the equivalent figure for protein is 3.35%.
According to the co-op CEO, these milk quality figures are increasing the average Dale Farm producer milk price by 1.51p/L.
The co-op is in the second year of transitioning its producer price structure to one that gives a greater recognition of milk components and, according to Nick Whelan, this process will continue.
Improvements in bactocount levels are also acting to significantly improve the quality of the milk supplied to Dale Farm, with a revised bonus structure introduced in October to reflect this back at supplier level.
Dale Farm
The CEO and the members of the co-op’s board have stated that they are very aware of the fact that it has been a very tough few months for farmer members.
While forage quality and input costs are outside of our control an increase in milk price will be welcome news, the co-op said.
“Dale Farm’s financials have never been stronger. The business reported a very strong set of accounts for the past 12 months and this trend will be maintained into 2024.
“Every aspect of the Dale Farm operation is now delivering profit. This was not the situation a number of years ago.”
Investment for the future is at the centre of the development plans agreed for Dale Farm. The business currently produces 60,000t of cheddar cheese annually; the intention is to push this figure up to 80,000t over time.
“Currently, half of our cheese is sold as pre-packs into retail outlets across 28 countries,” Whelan said.
“The other 50% is sold to high-end food processers. Making this happen is the fact that Dale Farm produces high quality industrial curds, using a patented process,” he added.
“In addition, our whey is sold for the production of high quality infant formula. Again, this reflects very positively on the quality of the milk we receive from suppliers.”