Becoming the latest processor to announce its March milk price Dairygold confirmed that it has reduced its milk price by 2c/L to 32c/L.
This is inclusive of 0.5c/L quality bonus and VAT, based on standard constituents of 3.3% protein and 3.6% butterfat.
According to the co-op, the milk price reduction is “regrettable” but unavoidable; as farm gate milk prices continue to be well ahead of market returns.
Since the final quarter of 2017, the global market is returning significantly less than the milk price paid to milk suppliers – a situation that has continued through 2018 to date, Dairygold added.
The payment will be included in the March monthly milk payment to be paid later this week.
Other processors
Meanwhile, earlier today, Kerry announced a base price of 32c/L including VAT for milk produced during the third month of this year.
This is a reduction of 2c/L down from the 34c/L given for February milk.
In line with Kerry’s milk price contract commitment, the processor will pay a 1.5c/L bonus on all milk produced between January 1 and March 31. Milk included in fixed milk price contracts will not be eligible for the top-up.
Last Friday, LacPatrick Dairies announced a 2.5c/L cut to the price paid to suppliers in the Republic of Ireland, who will be paid 30.25c/L.
A price of 25p/L (a drop of 2p/L on the February price) has been set for suppliers in Northern Ireland.
Meanwhile, on Thursday, Glanbia announced a 2c/L cut for last month’s supplies – paying its milk suppliers a base price of 30c/L including VAT at 3.6% butterfat and 3.3% protein.
However, a weather support payment of 3c/L will be given – coming from the co-op – to maintain current payments in light of severe weather conditions, bringing it back to 33c/L.
This follows on from a previous 3c/L cut to the February base price, which dropped from 35c/L to 32c/L including VAT, though a top-up of 1c/L was also given.
Last Tuesday also saw Lakeland Dairies announce its March milk price, being the first processor to do so.
The co-op reduced its base milk price by 2.5c/L; but offset this through the payment of 2.5c/L support for all March supplies.
This maintains the effective milk price payout for March at 34.56c/L including VAT and lactose bonus, according to Lakeland.