Arrabawn announced a milk price increase of 1.25c/L for August supplies, reflecting market trends and emphasizing sustainability through a 0.5c/L incentive.
Price Increase Announcement
On September 19, Arrabawn announced a rise in its milk price for August supplies, reflecting ongoing market trends. The board confirmed an increase of 1.25c/L, bringing the total price to 47.15c/L for standard milk constituents (3.3% protein and 3.6% butterfat). This marks an increase from the 45.9c/L paid in July. Notably, the August price includes a 0.5c/L sustainability incentive payment, showcasing the company’s commitment to environmentally responsible practices.
Broader Industry Movements
Arrabawn’s announcement aligns with similar price adjustments from other major processors:
- Tirlán: Increased to 46.33c/L for August creamery milk, up 1.5c/L from July.
- Dairygold: Raised its price by 1.25c/L to 45.75c/L, including sustainability and quality bonuses.
- Carbery Group: Increased milk price by 3c/L, averaging 48.03c/L across four west Cork co-ops, incorporating VAT and sustainability bonuses.
- Kerry Dairy Ireland: Increased to 45.25c/L, up from 44c/L in July for standard constituents.
- Lakeland Dairies: Also raised its price by 1.25c/L to 46.5c/L, which includes a 0.5c/L Sustainability Incentive Payment.
Industry Outlook
The rising prices across processors reflect both robust market demand and a growing emphasis on sustainability incentives. As processors like Arrabawn respond to economic conditions, the incorporation of incentive-based payments is becoming increasingly standard in milk pricing structures.
This upward trend in milk prices indicates a positive outlook for dairy farmers, providing stable returns as global dairy markets remain firm. The focus on sustainability not only enhances profitability but also aligns with the industry’s long-term goals for responsible production.
