Dairygold has confirmed today (Tuesday, April 19) that it is increasing the price paid to its suppliers for March milk.
The company has increased the March quoted milk price by 3.5c/L to 46.5c/L, based on standard constituents of 3.3% protein and 3.6% butterfat, inclusive of bonuses and VAT.
In addition, Dairygold outlined that the March early-calving bonus of 1c/L (excluding VAT) will be paid on milk supplied in March in accordance with milk quality criteria, giving a total milk price of 47.5c/L.
In February, the quoted milk price was 43.0c/L, which was up by 1.5c/L compared to the previous month.
The processor said that this milk price equates to an average March farmgate milk price of 51.5c/L, based on average March milk solids achieved by Dairygold milk suppliers.
The quoted milk price for March based on EU standard constituents of 3.4% protein and 4.2% butterfat is 50.7c/L (excluding the March early-calving bonus).
A Dairygold spokesperson commented that “the weakened supply from all major milk-producing regions and the increase in dairy demand has driven further strength in global dairy markets.
“The war in Ukraine and the uncertainty of global energy costs continues to drive the cost to produce and process milk.
“The situation remains under constant review. As is customary, the Dairygold board will continue to monitor markets closely and review milk price on a month by month basis,” the spokesperson concluded.
Last week, Dairygold reported a “strong performance” in its financial results for 2021.
The company delivered a “record” turnover of €1.17 billion, an increase of 15% or roughly €152 million on the 2020 figure, with an operating profit of €30.4 million, reflecting an increase of €4.4 million.