First processor raises October milk price
Lakeland Dairies has decided to increase its October milk price by 1c/L, following a meeting of the co-op’s board earlier today.
Today’s 1c/L increase brings the October milk price paid to farmer suppliers to 27c/L including VAT, and it follows on from last month’s 1c/L milk price increase.
Last month, the co-op increased its milk price for September supplies to 26c/L.
Earlier this week, the Ornua Purchase Price Index (PPI), the monthly indicator of market returns on dairy products sold by Ornua, increased for the fourth consecutive time this year.
The October the PPI increased to 95.9 points, which is the equivalent of 27.9c/L VAT inclusive, based on Ornua’s product purchase mix and assumed costs of 6.5p/L.
This latest increase reflects higher returns in the month across all main products, according to Ornua.
Compared to the September PPI, the October returns rose by 3.7 points. The PPI has steadily been rising since July, which was the first time it rose in 16 months.
Prices rise at the latest Global Dairy Trade Auction
Dairy product prices rose 11.4% at last week’s Global Dairy Trade auction, the second biggest increase in prices this year.
Whole milk powder (WMP) was the main driver of the price increase at the latest auction, with prices rising 19.8%.
Skimmed milk powder (SMP) prices increased 6.5% and butter prices were up 4%.
However, not all dairy products saw price increases, with Lactose prices down 4% and butter milk powder (BMP) down 5.4%.