Dairygold has become the latest processor to announce its March milk price, revealing its decision to lower the price for last month’s milk.
In a statement today, Friday, April 17, the southern processor confirmed that its base price for March milk supplies, based on standard constituents of 3.3% protein and 3.6% butterfat is 29.69c/L including VAT and bonuses.
This equates to an average farm gate milk price of 33.8c/L based on average March milk solids, achieved by our suppliers, for all milk supplied to Dairygold and the March early calving bonus, a spokesperson for the co-op said.
Continuing, the representative said: “The Covid-19 pandemic has fundamentally distorted the global demand for dairy products.
“The food service industry which supplies hotels, restaurants, the ready meals sector and convenience foods outlets closed almost overnight which has resulted in an immediate knock on price impact for milk, cream and cheese.
Dairy ingredient and commodity market returns, particularly milk powder returns, have fallen very significantly.
“The magnitude of the ingredients price drop has regrettably impacted milk price at farm level. Dairygold board and management are doing everything possible to mitigate the consequences but unfortunately milk price adjustments are necessary at this point,” the spokesperson added.
“In what is a very challenging time for all stakeholders, everything that can be done is being done to ensure the continuity of all processing operations and essential services for our members and customers,” the representative concluded.