Dairygold latest co-op to announce milk price increase
The spring boost for dairy farmers continues with Dairygold the latest processor to increase its January milk price following earlier moves by Glanbia Ingredients Ireland (GII), Kerry Group and Lakeland Dairies.
The Dairygold Board increased the price for milk supplied to the Society in January 2017 by 1 cpl, bringing the Dairygold milk price for January to 31.5 cpl including VAT and the 0.5 cpl quality bonus.
Kerry Group lifted its milk price by 2c/l to a base of 31c/l. Glanbia are the same base price following its lift of 1c/l, while Lakelands also increased its base price by 1c/l to 31.28c/l. All prices are VAT inclusive.
Although Glanbia chairman Henry Corbally cautioned that there remained significant uncertainty in the global dairy market outlook, he said the company would continue to monitor markets on a monthly basis.
Reacting to the price lift, Gerald Quain of ICMSA said the move was a "recognition of reality". However, he insisted that further increases were needed to bring the Irish farmer milk price into line with the market.
Both the ICMSA and IFA had insisted there was room for price hikes in January on the back of the lift in Ornua's PPI and last week's stronger GDT.
The PPI increased by 1.6 to 105.4 points, which equates to 31.4c/l including VAT. Meanwhile, Fonterra's GDT was up 1.3pc.
They also pointed out that milk production across northern Europe has been down 5pc to 12pc through the back end of 2016, while prices of 32-33c/l were being paid by Europe's leading processors.