Dairygold increases its milk price for May

Dairygold has become the latest processor to reveal its milk price for May – and the first processor so far to announce an increased price.

The price was announced this afternoon, Wednesday, June 17, following a meeting of the board of the cooperative.

The southern co-op revealed its decision to increase its May milk price by 0.5c/L.

This will see a price paid to farmers of 29.19c/L including 0.65c/L in quality and sustainability bonuses and VAT, based on standard constituents of 3.3% protein and 3.6% butterfat.

A spokesperson for Dairygold said: “This equates to an average farm gate milk price of 31.37c/L based on average May milk solids, achieved by our suppliers, for all milk supplied to Dairygold.

“Dairy markets in recent weeks have been more positive, but it’s too soon to call it a true recovery, as market uncertainty and volatility abounds. Covid-19 lock-downs are being lifted with food-service pipelines refilling as businesses begin to reopen.

Chinese demand for the remainder of the year and the Brexit situation remain real concerns.

“Based on some cautious optimism, the Dairygold board decided to increase the Milk Price by 0.5c/L and will continue to monitor the situation,” the spokesperson concluded.

Dairygold is the fifth processor to reveal its price for last month’s milk.

Previous prices

Yesterday, Carbery Group revealed its price for May milk. Commenting, a group spokesperson said:

“Carbery is maintaining its milk price for May.

If this decision is replicated across the four west Cork co-ops – Bandon, Barryroe, Drinagh and Lisavaird – this will result in an average price for May of 31.4c/L.

“This price is inclusive of VAT and 1.5c/L support, and exclusive of SCC [somatic cell count] or any other adjustments which may be made by the co-ops,” the group representative added.

Earlier yesterday morning, Kerry Group also revealed its decision to hold its milk price for May.

This morning, a representative of Kerry Group said:

Our Kerry Group base price for May milk supplies is 29.5c/L including VAT.

“Based on average May milk solids, the price return inclusive of VAT and bonuses is 31.54c/L,” the spokesperson added.

This follows on from announcements from both Glanbia and Lakeland Dairies, which also decided to hold their respective milk prices for May.