NI milk price round-up: September increases across the board
Milk prices are on the rise across all of Northern Ireland’s major milk processors, with most upping their offering for September milk by 1p/L.
Glanbia Ireland topped the board again at 27p/L, an increase of 1p/L on its price for August, while Dale Farm, Aurivo and Lakeland Dairies all remained roughly level at around 26.25p/L.
Industry analysts explained the recent round of increases have been driven by stability in global markets, however, come with a warning that stop-start restrictions on hospitality and private storage stocks have the potential to rock the market coming into Christmas.
Base prices for September are as follows:
- Glanbia Ireland NI: 27p/L (up 1p/L).
- Dale Farm: 26p/L plus 0.3p/L loyalty bonus (up 0.75p/L).
- Aurivo: 26.25p/L (up 1p/L).
- Lakeland Dairies (NI): 26.25p/L (up 1p/L).
- Glanbia Cheese: 26p/L (up 1p/L).
Prices followed a similar pattern in the Republic where most processors also increased.
Among the big hitters, the top price was offered by Carberry Group in Cork who paid 32.4c/L.
Commenting on the price, a spokesman for Lakeland Dairies said: “There is some stability in the global dairy markets but there are growing worries around the supply and demand dynamic.
“After a subdued first half of the year, supply in many of the main production areas appears to be ramping up through the second half of 2020.
With demand still subdued, a major surge in milk supply would be concerning for markets ahead of the critical Christmas buying season.
“There is also a considerable volume of product in private storage, which will be back on the market in the coming weeks. Demand will need to ramp up to deal with this extra volume.
“The recent improvement in foodservice sales is welcome but as all economies deal with a resurgence of Covid-19, the recovery for the sector is stop-start with fluctuations in demand.
“The entire dairy industry remains hopeful that a Free Trade Agreement between the EU and the UK can be agreed as ending the transition period without a deal would be extremely worrying for exporting companies.”