Dairygold has announced its milk price for supplies in April, confirming a drop in its offering to suppliers.
Dairygold has reduced the April-quoted milk price by 2c/L to 40c/L, based on standard constituents of 3.3% protein and 3.6% butterfat, inclusive of sustainability and quality bonuses and VAT.
The April milk price equates to an average April farmgate milk price of 43.1c/L based on average April milk solids achieved by Dairygold milk suppliers, the processor said.
The quoted milk price for April, based on EU standard constituents of 3.4% protein and 4.2% butterfat, is 43.6c/L.
A spokesperson for Dairygold commented on the reason for the latest price decline.
“There continues to be weakness in global dairy ingredient markets over the last number of weeks. This is driven by a reduction in demand in certain markets and products driven by previous high prices,” the spokesperson said.
They added: “There is some indication that markets are stabilising but it remains to be seen if this is sustained across peak supply. The Dairygold board will continue to monitor markets closely and review milk price on a month by month basis.”
Dairygold’s announcement comes after Lakeland Dairies announced its price for April last week.
The board of Lakeland has decided to reduce its price by 4c/L, bringing the figure to 38.85c/L including VAT, for milk at 3.6% fat and 3.3% protein.
This compares to a price of 42.85c/L for milk supplied in March.
Lakeland’s April price includes an input support payment of 1.5c/L, inclusive of VAT, for all suppliers.
In Northern Ireland, Lakeland has reduced the milk price by 3.5p/L to 31.5p/L, compared to 35p/L for last month’s price.
The Northern Irish price also includes a supplementary input support payment of 1.5p/L.
Lakeland said that these prices reflect “ongoing market conditions”.
“The balance of global supply and demand remains outweighed by a stronger level of supply with reduced market returns a continuing factor based on modest demand from buyers,” the co-operative said in a statement.