Dairygold follow Glanbia and Kerry with milk price cut
Dairygold has cut its milk price by 2c/l to 35c/l for July supplies. The move means that Aurivo is paying the leading manufacturing milk price following its decision last week to hold at 37c/l for the month.
Glanbia and Kerry moved to 35c/l for July supplies early last week, while Lakeland Dairies are quoting a price of 36c/l.
Although Dairygold's decision to drop to 35c/l had been well flagged, it will have still come as a disappointment to the co-op's 3,000 milk suppliers.
The ICMSA has estimated that the milk price reductions will cost dairy farmers €140m for 2014 on the basis that there will be no further reductions in milk price for the rest of the year.
The association's deputy president, Pat McCormack, pointed out that the fall in milk price from 39cpl to 35cpl over the last quarter has cost the average milk producer of 300,000 litres close to €1,200 for the month of July alone. This followed a loss of €600 for the June and May milk cheques, Mr McCormack pointed out.
However, Mr McCormack insisted that there were positives in the market feedback at the moment.
"Given that we are in the August period, the last Global Dairy Trade auction is surprising in that it sold the second highest volume of product since January and also had the largest number of buyers, it strongly suggests that demand for dairy products remain strong," Mr McCormack said.
He pointed out that with EU and regions like China moving into their quiet production periods, it was essential that "hasty decisions" were not taken.