Arrabawn confirms milk price for August supplies

Arrabawn has confirmed today (Tuesday, September 19) a cut in its milk price for August, from a base price of 38c/L in July to 36c/L this month, including VAT.

This is based on 3.3% protein and 3.6% butterfat for August milk supplies.

According to Arrabawn, the price equals to 39.07c/L including VAT at EU standard constitutes 3.4% protein and 4.2% butterfat.

Arrabawn’s average price for August, inclusive of VAT and bonuses is 40.41c/L compared to the average cost for July, which was 40.79c/L.

Arrabawn is just the latest major processor to announce a drop in prices this week.

Other milk price announcements

Dairygold yesterday (Monday, September 18) also reduced its milk price by 2.5c/L to 33.5c/L.

The August milk price equates to an average August farmgate price of 39.4c/L, based on average August milk solids achieved by the processor’s milk suppliers.

A company spokesperson commented that global milk markets continue to weaken due to pressure on demand in key markets, with no sign of near-term correction.

Last week, Tirlán confirmed that it will reduce the price it will pay for milk supplied in August by 2.5c/L on the July price.

The processor will pay a total of 33.08c/L, including VAT, for August creamery milk supplies at 3.6% butterfat and 3.3% protein.

Kerry Group also confirmed that it will pay suppliers a base price of 32c/Lincluding VAT, for milk supplied during the month of August.

The processor also announced that there will be a further milk contract payment of 3c/L, including VAT, on all qualifying milk volumes.

Suppliers who receive the additional payment will see a price offering of 35c/Lincluding VAT, at 3.3% protein and 3.6% butterfat.

Lakeland said that the expected average payment for Republic of Ireland suppliers for August, based on this latest price, will be 38c/L.

The base price offering for suppliers in Northern Ireland, meanwhile, has been reduced by 1.25p/L, to give a price of 27.25p/L, down from 28.5p/L for last month.


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