The overall quoted milk price to be made to Dairygold suppliers will see a net increase after the processor announced a price rise of 2c/L.
As Dairygold’s weather/fodder relief payment – paid at a rate of 1c/L for April milk – is no longer in effect – the net increase is 1c/L, for a quoted price of 42c/L.
This is based on standard constituents of 3.3% and 3.6% butterfat, and includes VAT and sustainability and quality bonuses.
The May milk price equates to an average farmgate milk price of 45.2c/L, based on average May 2024 milk solids achieved by Dairygold suppliers, the processor said.
A spokesperson for Dairygold said: “The Dairygold board recognises the importance of setting a strong milk price, to encourage milk suppliers to maximise milk production for the remainder of the year, following the significant challenges they experienced due to the adverse weather conditions.”
The spokesperson added: “While dairy market returns have improved in the last month, driven primarily by butter prices, there remains uncertainty regarding future pricing, due to continuing weaker demand, as global milk supply remains flat.”
The Dairygold spokesperson said that its board will continue to monitor markets closely and review milk price on a monthly basis.
Dairygold is the latest processor to announce its milk price for May supplies.
Most recently, Arrabawn said yesterday (June 17) that it had decided to increase its base price for milk supplied in May to 42.15c/L based on standard constituents of 3.3% protein and 3.6% butterfat.
In addition, Arrabawn will pay a supplier input support payment of 1c/L, as well as a sustainability bonus of 0.5c/L. This equates to an overall price of 43.65c/L.
Meanwhile, Kerry Dairy Ireland, a division of Kerry Group, confirmed that its May milk price will remain unchanged at 41c/L including VAT, at 3.3% protein and 3.6% butterfat.
And last week, the board of Lakeland Dairies confirmed that its base milk price will remain unchanged for May supplies.
The processor said that a base price of 41.9c/L, based on 3.6% butterfat and 3.3% protein, will be paid for May milk in the Republic of Ireland.
Lakeland said that a 1c/L Input Support Payment will continue to be paid on top of the base price, for a total of 42.9c/L for milk supplied by Republic of Ireland farmers in May.