First processor increases December milk price to over 30c/L

Lakeland Dairies has increased the milk price paid for December supplies to 30.28c/L including VAT, a spokesperson has confirmed to Agriland.

The decision to rise the December price by 1c/L was made at a board meeting today (Thursday), and it follows on from last month’s decision to increase the November milk price by 2c/L to over 29c/L including VAT.

In recent days, co-ops have been encouraged to pay over 30c/L for December milk supplies.

Speaking to Agriland recently, ICMSA President John Comer said the market should be returning over 32c/L.

“Further contraction in supply is feeding into this and glitches in recent Global Dairy Trade auctions are not significant.

We’re encouraging boards to consider what the market is returning and maximise the price paid to the primary producer, many of whom are still trying to clear debt.

Comer said that looking forward he expects the market to return 33-34c/L at most and that much depends on the European Commission and how it releases the skimmed milk powder (SMP) in intervention.

Meanwhile, a minimum price of 30c/L plus VAT would be fully justified on December milk, with a view to reaching at least 33c/L before peak, IFA National Dairy Chairman Sean O’Leary has said.

Speaking following the first 2017 meeting of the IFA Dairy Committee, he said that this price is on the basis of the continued firming of EU and many global dairy product prices into 2017, underpinned by falling global milk supplies and solid demand.

IFA National Dairy Committee members will continue to lobby co-op board members ahead of their December milk price decisions, which will be made this week in most cases.