Aurivo announces a price cut for July milk supplies
Aurivo has announced a cut to its milk price for July supplies, blaming deteriorating butter returns for the cut.
The Board of Aurivo set the price for July milk, stating it will pay a base price of 30.0c/L for July milk. It paid 30.5c/L for June supplies.
In a statement, it said the price was "based on the evolving market situation" and the average price paid by Aurivo based on average constituents supplied will be 31.9c/L.
“Butter returns has deteriorated significantly in the last number of weeks. Powder markets remain solid. The Board will keep the evolving situation under review in the coming months and pay the maximum price that markets can return.”
Last month, when it set its June price, it said the pressure on returns is noted and current milk price does not reflect current returns, in particular due to lower butter prices in the market, which it had also warned about.
Earlier this week Glanbia cut its base milk price to 29.5c/L, a move that was strongly criticised by farming organisations. Lakeland Dairies and Kerry also announced milk price cuts for their July supplies this week.
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