Dairygold has announced its milk price for supplies in December, following on from Lakeland Dairies’ announcement last week.
The processor confirmed that it will increase its quoted milk price by 1.5c/L to 37c/L for December milk, based on standard constituents of 3.3% protein and 3.6% butterfat, inclusive of sustainability and quality bonuses and VAT.
According to Dairygold, the December milk price equates to an average December farmgate milk price of 46.9c/L, based on average December milk solids achieved by the processor’s suppliers.
A spokesperson for Dairygold said that global milk markets “have continued to return increased value in recent weeks as supply and demand have rebalanced”.
“Future markets continue to look positive, but sentiment will remain cautious until we get further into the spring.
“The Dairygold board will continue to closely monitor markets and review milk price on a month-by-month basis,” the spokesperson added.
Lakeland also decided to increase its price offering to suppliers when it made its announcement last week.
The cross-border based processor confirmed on Wednesday last (January 10) that it will increase its milk price by 1.15c/L for December.
A base price of 37.15c/L at 3.6% butterfat and 3.3% protein will be therefore be paid for milk supplied from the Republic of Ireland.
Qualifying farmers will also receive a 5c/L out-of-season payment.
For milk supplies from Northern Ireland, Lakeland will pay a base price of 30.25p/L, an increase of 1p/L. An out-of-season payment of 3p/L will apply.
Similarly to Dairygold, Lakeland gave a somewhat optimistic yet cautious view of milk markets at present.
The processor said: “As we face into 2024, the global dairy markets are more favourable but remain delicately poised. While there are some sensitive market indicators, particularly around milk supplies in key regions, demand uncertainty remains.
“Lakeland Dairies will continue to monitor the markets closely in the time ahead,” the processor added.
These milk price announcements come after Bord Bia revealed data on the performance of dairy exports in 2023.
The value of Irish dairy exports stood at €6.3 billion in 2023, down almost 8% when compared to the previous year, according to the Bord Bia Export Performance and Prospects Report 2023—2024, which was published last week.
The decline in the value of butter and casein exports was partly offset by increases in the value of cheese, specialist nutritional powders, yoghurt, and whole milk powder.
The value of butter exports declined by 12% to €1.3 billion during the year, while the value of cheese exports increased by 4% to the same figure of €1.3 billion.
These swings left butter and cheese as the joint top two products in the dairy category, each accounting for 21% of the sector’s export value.
Milk collections in Ireland declined by almost 2% on 2022 levels, as poor weather led to difficult grazing conditions. This was the first year of decline since production quotas were lifted in 2015.