Arrabawn could set trend for dairy co-ops by cutting its milk price

Dairy co-ops could follow Arrabawn’s lead and cut their milk price in the near future, according to analysts at Bloxham Stockbrokers.

Arrabawn is expected to cut its milk price by 1.95c per litre, making its March price 32.5cpl including VAT — effectively bringing it back to the 32.34cpl it offered in January. The Tipperary co-op is expected to make this move after its annual meeting today in Nenagh, at which it will issue its financial results for 2011.

With prices being paid for milk reducing internationally due to a stronger than expected global output for spring, Bloxham Stockbrokers predict that other Irish co-ops will follow Arrabawn’s lead and shortly cut their price per litre.