Ireland, November 16, 2018: The board of one of Northern Ireland’s largest milk processors, Dale Farm, has announced plans to cut its October milk price.
Board members today announced they would cut the co-op’s standard litre price by half a penny. It brings the price down from 28.2p/L plus the 0.3p/L loyalty bonus to 27.7p/L plus loyalty bonus according to agriland.ie
Just yesterday, cross-border rival Lakeland Dairies announced it would hold its milk price at 27.5p/L.
Analysts had warned that the European dairy market had begun to cool as drought fears dissipated.
Analysis by the Agriculture and Horticulture Development Board (AHDB) said that with milk production across the EU showing “little or no immediate impact” from the hot, dry summer, there were “few concerns” over a lack of supply.
As a result, market sentiment had shifted with prices falling for butter and cream.
The previous three-year contract offered by the firm tied suppliers in at 27p/L.
Milk supplied on the contract will be eligible for standard quality payments of Dale Farm Cooperative, as well as the large producer rebate bonus.