Dairygold has today (Tuesday, April 18) become the latest processor to cut the milk price for supplies in March.
The processor confirmed that it would be reducing its quoted milk price by 4c/L to 42c/L, based on standard constituents of 3.3% protein and 3.6% butterfat, inclusive of sustainability and quality bonuses, and VAT.
In addition, the March early calving bonus of 1.05c/L, including VAT, will be paid on milk supplied in March in accordance with milk quality criteria.
This means that milk supplied in March that qualifies for the early calving bonus will have a quoted price of 43.05c/L.
The March milk price equates to an average March farmgate milk price of 47c/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 45.8c/L.
Dairygold
“There has been significant pressure on milk price from continued weakness in the market over the last number of weeks and this has resulted in reduced returns for dairy commodities,” a spokesperson for Dairygold said.
“While we remain hopeful that dairy markets will stabilise in the medium term, milk returns remain under pressure in the short term.
“The Dairygold board will continue to monitor markets closely and review milk price on a month by month basis,” they said.
Milk price
The announcement from Dairygold follows a general trend among processors due to challenging global dairy markets.
Yesterday, Arrabawn co-op confirmed that it will reduce its milk price for March by 4c/L to 44.19c/L inclusive of VAT at 3.6% fat and 3.3% protein.
Kerry Group confirmed a similar cut for its suppliers with a base milk price for March of 40c/L, including VAT, for milk at 3.3% protein and 3.6% butterfat.
On Friday (April 13), the board of Lakeland Dairies reduced milk price in the Republic of Ireland by 4c/L to 42.85c/L inclusive of VAT at 3.6% fat and 3.3% protein.