July milk rise continues, as Arrabawn and Aurivo set their prices
The July milk price rise has continued as both Arrabawn Co-op and Aurivo Co-op have decided to increase their milk prices.
At a meeting of the board yesterday evening, Arrabawn Co-op decided to rise the price paid for July milk supplies to 34.99c/L (including VAT) – a 1.25c/L increase.
The board of Aurivo Co-op has also set its July milk price and 34.5c/L (including VAT) has been agreed upon.
That’s a 1c/L increase on the June price and, according to the co-op, it reflects the continued improved returns from dairy markets.
This improvement, it says, is been driven by record prices for butter while powder prices remain weak.
In recent days, a number of other processors have also decided to increase the price being paid for July milk collections.
Yesterday, Dairygold announced its milk price for the month of July, upping its base price by 1c/L to 34.5c/L (including 0.5c/L quality bonus and VAT). A similar milk price increase was also observed for June milk supplies.
Earlier this week, Kerry also decided to up its base price by 1.5c/L to 34.5c/L including VAT for July supplies.
Last week, Glanbia and Lakeland Dairies became the first processors to announce milk price increases for manufacturing milk at 3.6% butterfat and 3.3% protein.
A 1c/L increase announced by Glanbia means that its suppliers will be paid 34c/L including VAT for milk produced during the seventh month of the year.
This is the third consecutive monthly increase of 1c/L announced by Glanbia. Prior to increasing its May milk price, the processor had held its price at 31c/L for three months in a row.
Similar to Glanbia Ireland, this is the third consecutive monthly increase announced by Lakeland Dairies; it also increased its May and June milk price by 1c/L.
Earlier in the week, the IFA’s (Irish Farmers’ Association’s) Dairy Chairman Sean O’Leary urged co-ops to up their July milk prices by at least 1c/L.
He said: “Every additional cent co-ops can pass back to farmers as early as possible will make a vital contribution to their financial situation, allowing them to catch up with repayment commitments, including their merchant credit debt to the co-op.
“It will also be due recognition for the commitment made by farmers to SDAS (Sustainable Dairy Assurance Scheme), which co-ops owe them to leverage into better markets and prices,” O’Leary added.