Dairygold drops milk price for February

Dairygold Co-op has become the latest processor to drop the milk price for February supplies in what has been a gloomy few days for Irish dairy farmers.

The co-operative has today decided to reduce the price for milk supplied in February by 2c/L bringing the price to 34c/L including a 0.5c/L quality bonus and VAT.

This drop follows five consecutive months of Dairygold holding its previous price of 36c/L, which also included the 0.5c/L quality bonus.

Dairygold has become the fourth processor to lower its February price, following on from Lakeland Dairies, Kerry and Glanbia.

On Tuesday, Lakeland announced that its milk price will be reduced by 1c/L to 34.56c/L (including VAT and lactose bonus) for February.

The reduction in the base milk price “reflects extremely challenging market conditions including lower returns for powders and butter in recent months”, according to the processor.

The same day, Kerry revealed that its decision to introduce a price cut of 2c/L – VAT inclusive – for February supplies, paying farmers a total of 34c/L – bringing to an end five months of holding the previous milk price of 36c/L.

Last month’s price was not supported by actual demand in the marketplace, according to Kerry Group chief executive Edmond Scanlon.

Meanwhile, on Monday, Glanbia Ireland announced its decision to cut its milk price for February supplies and pay its milk suppliers 32c/L including VAT for February manufacturing milk supplies at 3.6% butterfat and 3.3% protein.

This is a reduction of 3c/L from the January price.

The Glanbia February milk payment will also include a payment of 1c/L “to reflect the particularly challenging weather conditions experienced on Glanbia farms”.