Latest processor announces July milk price hike

Dairygold has become the latest processor to announce its milk price for the month of July, upping its base price by 1c/L to 34.5c/L (including 0.5c/L quality bonus and VAT).

This follows Dairygold’s decision to add an extra 1c/L last month for June milk.

Dairygold’s announcement follows on from Kerry, which decided (earlier this week) to up its base price by 1.5c/L to 34.5c/L including VAT for July supplies.

Last week, Glanbia and Lakeland Dairies became the first processors to announce milk price increases for manufacturing milk at 3.6% butterfat and 3.3% protein.

A 1c/L increase announced by Glanbia means that its suppliers will be paid 34c/L including VAT for milk produced during the seventh month of the year.

This is the third consecutive monthly increase of 1c/L announced by Glanbia. Prior to increasing its May milk price, the processor had held its price at 31c/L for three months in a row.

Meanwhile, Lakeland Dairies has also announced an increase of 1c/L for July supplies – bringing its base price to 34c/L including VAT.

Similar to Glanbia Ireland, this is the third consecutive monthly increase announced by Lakeland Dairies; it also increased its May and June milk price by 1c/L.

Other processors are expected to announce their July milk prices in the coming days.

Earlier in the week, the IFA’s (Irish Farmers’ Association’s) Dairy Chairman Sean O’Leary urged co-ops to up their July milk prices by at least 1c/L, saying: “Every additional cent co-ops can pass back to farmers as early as possible will make a vital contribution to their financial situation, allowing them to catch up with repayment commitments, including their merchant credit debt to the co-op.

“It will also be due recognition for the commitment made by farmers to SDAS (Sustainable Dairy Assurance Scheme), which co-ops owe them to leverage into better markets and prices,” O’Leary added.