Aurivo announces May milk price and warns of weak butter markets

File photo
File photo

The Board of Aurivo has announced it is holding its milk price at 30.5c/L including vat for the month of May.

In a statement, it said markets continue to be supply driven with modest demand growth evident.

It also warned that butter markets in particular are weaker as stocks replenish and advised that the Board will closely monitor market returns and pay the maximum return to members in line with prevailing market conditions.

It comes after Lakeland Dairies and Kerry both announced unchanged milk prices for May supplies

The Board of Lakeland Dairies set a price of 31.28c/l (including VAT) has been agreed for milk supplied in May. The base price has been held from April.

In Northern Ireland, a price of 25.25p/l will be paid for May supplies. Again, the base price has been held.

Commenting on the price, the Co-op said: “There continues to be weakness in the European dairy markets driven by the persistently high volumes of product in stock, particularly in the UK. Official European butter prices have hit a four-year low in recent weeks.

“We will continue to closely monitor the market in order to extract the strongest prices for our farmers.”

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Meanwhile the Kerry Group base price for May milk supplies remains unchanged at 30.5 cpl vat inclusive. Based on average May milk solids, the price return inclusive of vat and bonuses is 32.62c/L.

Glanbia announced that it has held its milk price for the month of May.

The processor confirmed that it is paying 30.5c/L including VAT for May manufacturing milk supplies at 3.6pc  butterfat and 3.3pc protein.

The Chairperson of ICMSA’s Dairy Committee said the shortfall between the Ornua PPI price-per-litre and the average price actually being paid by Irish Co-ops will cost the average milk supplier “around €2,000” over the peak production period.

Ger Quain said that the May price announcements so far had raised more questions than they answered but one, he said, loomed above all others and answering it was now an imperative.

“The Co-ops must explain to their farmer-suppliers why they are either unwilling, or unable, to pay their farmer-suppliers the price that they themselves are receiving.

"Just announcing that you’ve managed to hold price can’t be enough; the least farmers are entitled to is an explanation of why they are now receiving a price that, in some cases, is now approximately 1.5c/L less then the price that the Co-ops have already received.

"The onus is not on ICMSA to speculate, the onus is on the Co-ops to explain publicly why they are not paying farmers the 32c/L that the Ornua Index indicates as the minimum price that every milk supplier in the state should be being paid. We await the explanation”, said Mr Quain.   

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