Milk prices increased by 1.2p/litre at United Dairy Farmers’ latest auction to average 26.22p/litre.
That was the third consecutive month of price rises, but values were still 3.31p/litre below the same time last year when 40m litres were sold for September delivery, compared with 36m litres at the latest sale.
“This is another step in the right direction,” said chief executive David Dobbin. “The auction price has increased on the back of falling milk production and firming world markets for dairy products.
“After record milk supplies in May, milk production in Northern Ireland is now falling seasonally and with the poor weather is now also running behind last year’s levels. This is helping the demand for milk which was noticeably stronger in this week’s auction.”
Although poor weather in the USA, Russia and Europe had reduced global milk supplies, market returns were still lower than last year, he added. “While the increase is welcome, we are very aware of the financial difficulties faced by farmers and the fact that they need more.” Market focus would now be on New Zealand, which was starting its new production season.