Dairygold has announced its milk price for supplies in July, deciding to reduce its offering by a further 2c/L, following on from a cut in the same amount announced last month for June milk.
The processor confirmed this afternoon (Thursday, August 17) that its quoted milk price for last month’s supplies will be 36c/L, based on standard constituents of 3.3% protein and 3.6% butterfat, inclusive of sustainability and quality bonuses, and VAT.
Dairygold said that the July milk price will equate to an average farmgate milk price of 40.3c/L, based on average July milk solids supplied to the processor by its farmers.
A spokesperson for the business outlined the cause of the price reduction.
“Global milk markets continue to weaken due to pressure on demand in key markets, with no sign of near-term correction.
“The Dairygold board will continue to closely monitor markets and review milk price on a month-by-month basis,” the spokesperson added.
Dairygold’s announcement of its price comes the day after Kerry Group confirmed its price for July milk supplies.
Kerry announced yesterday that it will pay suppliers a base price of 34c/L for July milk, plus a milk contract payment of 3c/L on qualifying milk volumes.
Suppliers who will be in line for this additional payment will see a price offering of 37c/L, including VAT, at 3.3% protein and 3.6% butterfat.
Kerry Group said that, based on its average milk solids for July, the milk price return inclusive of VAT and bonuses will be 40.19c/L.
A statement from the processor said: “The outlook on commodity dairy continues bearish, with further downward pressure on European and global pricing.
“Dairy demand continues to struggle with no sign currently of any near-term correction.
“On the supply side, milk production across the major exporters continues in weak positive territory with volumes more than enough to meet subdued demand,” the Kerry Group statement added.
The processor’s base price for July milk of 34c/L reflects a 3c/L reduction on the base price for supplies in the two preceding months of 37c/L.