Magheralin-based mozzarella cheese company, Leprino Foods, is the latest processor to change how it pays farmers for milk in NI.
However, unlike Lakeland Dairies and Tirlán who have both opted for a solids based payment (A+B-C), Leprino is taking a similar approach to Dale Farm and increasing the value it puts on each 0.01% incremental change in butterfat and protein.
Up to now, Leprino has paid farmers across bands of 0.05%, with butterfat base set at 3.80% to 3.84% and protein base at 3.15% to 3.19%.
From 1 April, Leprino has a new butterfat base of 3.93%, with each 0.01% change valued at 0.035p/l. For protein, the new base is 3.23%, with each 0.01% above or below base, valued at 0.065p/l.
Lactose
The company has also been the last processor still to pay for lactose in NI – in our main milk league analysis on page seven, lactose at 4.81% adds 0.1p/l to the Leprino price. From 1 April, this lactose payment is being dropped.
SCC
Other changes being made to the Leprino payment model include an increase in the bonus paid for SCC below 200.
From 1 April, this increases from 0.2p/l to 0.4p/l, with the company keen to encourage low cell counts, given evidence this is linked to improved cheese and whey yields in processing.
Mozzarella bonus
The final significant change is to Leprino’s mozzarella bonus, which until March 2025 was worth 0.4p/l for milk at least 4% butterfat and 3.2% protein during winter months, dropping to 3.80% and 3.15% in summer months.
The new mozzarella bonus will pay 0.75p/l across all months where butterfat and protein are at least 4.08% and 3.26% respectively, with SCC below 200 and TBC under 25.
Looking at NI averages recorded by DAERA in 2024, these new criteria for the mozzarella bonus are met in all months, except August 2024, when the average SCC was 205.
Impact
To assess what impact all the changes might have on the Leprino price, we have re-run March 2025 figures, but against the revised payment criteria. Our analysis assumes everything else stays the same, including the 40.75p/l base price.
A key issue to note is that all the parameters used in our milk league analysis in March 2025 are at a level that would qualify for the increased mozzarella bonus, as well as the higher SCC payment.
As a result, in our main 750,000l league, the Leprino price increases from 42.86p/l to 43.75p/l, a rise of 0.89p/l.
In 1m-litre leagues, the price paid by Leprino for high quality milk would increase from 44.37p to 45.95p/l, an increase of 1.58p/l.
For average quality milk, the Leprino price is up by just over 1p/l to 44.78p/l, while for low solids milk, it is up 0.61p/l to 43.74p/l.
Suppliers to Leprino have the option of switching to the new payment regime from 1 April 2025 or waiting until 1 October.
SHARING OPTIONS