Dairygold has become the latest processor to announce its milk price for July, revealing its decision to drop its price from June.
In a statement, a representative for the cooperative confirmed that Dairygold’s base price for July milk supplies is 29.69c/L, including VAT and bonuses.
The base price is based on standard constituents of 3.3% protein and 3.6% butterfat, and is unchanged on the May milk price.
This equates to a farm gate milk price of 32.18c/L based on average July milk solids for all Dairygold milk suppliers.
A spokesperson for the co-op has said: “The reduction of 1c/L on the June milk price comes as over the last number of months, dairy markets have been challenging and uncertain, with butter returns falling significantly, far outweighing the marginal increases in powder prices.
The weakness in butter prices has been caused by excess supply over demand, according to the spokesperson.
More recently, cheddar cheese returns have been negatively impacted, primarily due to the uncertainty over Brexit.
“Regrettably, a downward milk price adjustment is necessary.”
Concluding, the spokesperson said: “Dairygold will continue to monitor market developments on a monthly basis and remains vigilant with regard to maximising the commercial return and ensuring operational efficiency.”