Milk processors have added 0.25p to 0.5p/l to base prices for January.

Glanbia Milk/Fivemiletown is out in front with an all-in price of 27.25p/l, having increased its base by 0.5p/l. Included is a 1.5p/l winter bonus payable on January milk, along with its 0.6p/l year-round bonus, leaving it almost 2p/l ahead of competitors.

Dale Farm also added 0.5p/l to its base, lifting it to 24.75p/l. When the co-op’s 0.3p/l loyalty bonus is included, suppliers are on an all-in price of 25.05p/l.

Lakeland was the first to set a January price

Glanbia Cheese was the third processor to increase by 0.5p/l, taking its base to 24.25p/l. However, that still leaves the Magerhalin-based company behind others before adjustments are made for quality and volume.

Lakeland was the first to set a January price, adding 0.25p/l to its base last Thursday, putting suppliers on 25.25p/l.

Strathroy held its base on 25p/l, which increases to 26p/l once its 1p/l winter bonus is factored in for January. At the time of going to press, Aurivo was yet to set a price for January.

Commodity markets

Meanwhile, dairy commodity markets saw prices slip by 2.9% at this week’s GDT as reduced buying demand from China due to the coronavirus outbreak impacts on short-term market confidence.

Butter prices eased by €50/t to €3,520

The GDT index now stands at US $3,176/t, with butter falling 3.9% to $4,090/t. Skim milk powder (SMP) fell by 2.6%, with whole milk powder (WMP) down by the same amount.

The negative tone filtered through to Wednesday’s Dutch Dairy Board (DDB) auctions where prices were also down. Butter prices eased by €50/t to €3,520, the first drop in value for six weeks. SMP fell by €60/t to €2,560, with WMP dropping €50/t to €3,050.

Supplies

Despite that, market analysts from the Agriculture and Horticulture Development Board (AHDB) have forecast that global supplies are set to remain tight which should underpin UK prices for the year ahead.

In 2019, UK milk production increased by 1.6% to close on a new record of nearly 15bn litres.

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