Dairygold has confirmed a 1.5c/L milk price increase to pay 24c/L including a quality bonus (0.5c/L), VAT inclusive, for July milk supplies.

Dairygold CEO Jim Woulfe said that Dairygold is seeing some positive sentiment in the market and it is cautiously optimistic that we are beginning to see the early stage of an upcoming gradual recovery in milk price.

“But it will still take a number of months before firm clarity of where the market is going will become evident.

“At the minute production has fallen back in key milk producing geographies but there is substantial global overhang of dairy stocks.”

With Russia remaining out of the market for European dairy and purchasing by oil-dependent economies remaining relatively weak it will be into 2017 before any significant or sustainable recovery gains traction.

Dairygold is well placed to take advantage of the recovery and to reflect the recovery as it develops in a gradually improving milk price, he said.

Dairygold’s milk price increase announcement comes after a spokesperson for Kerry Group said that the co-op would be holding its milk price at 22.5c/L for July supplies.

It follows Glanbia, Lakeland Dairies and Arrabawn in increasing the milk price for July.

Glanbia announced that it will pay its member suppliers 23c/L for July manufacturing supplies of milk, a 1c/L rise on the June milk price.

This price is inclusive of a 2c/L Glanbia Co-operative Society support payment to its members.

Glanbia Ingredients Ireland (GII) increased its base price by 1c/L to 21c/L including VAT for manufacturing milk at 3.6% fat and 3.3% protein.

The Board of Glanbia Co-operative Society has decided to pay its members a support payment of 2c/L (including VAT) for July manufacturing and liquid milk supplies.

Meanwhile, the board of Arrabawn Co-op met last week and decided to raise the base milk price by 1c/L.

Arrabawn also announced that it is to pay its member suppliers a support of 0.5c/L bringing the milk price for July to 24.25c/L, including VAT.

Lakeland Dairies was the first processor out of the blocks to set the July milk price. The co-op increased its milk price by 1c/L for July, giving member suppliers 24c/L for supplies.