Dairygold announced milk price cut, days after saying prices are more than market returns

Dairygold CEO Jim Woulfe. Pic Daragh Mc Sweeney/Provision
Dairygold CEO Jim Woulfe. Pic Daragh Mc Sweeney/Provision

Margaret Donnellyand Declan O'Brien

Dairygold has announced that it is cutting its April milk price to 30.69c/L.

In a statement today, it said this price is inclusive of 0.65c/L Quality and Sustainability Bonuses and VAT, based on standard constituents of 3.3pc Protein and 3.6pc Butterfat.

It comes after Dairygold's Chief Executive Jim Woulfe telling the co-op's agm last week that it was paying more for milk than it is getting back from market returns.

At the time there was no suggestion that Dairygold was considering cutting returns to farmers, but in a statement today, Dairygold said the price reflects a price reduction of 0.5c/L on the March base milk price paid.

"This adjustment is necessary to reflect dairy market returns."

The statement went on to say that while milk supply in Ireland and the UK is very strong, market demand is sluggish particularly in a European context. The Board will continue to monitor the position on a monthly basis.

According to the co-op, the April Price equates to a farm gate milk price of 32.72c/L based on average April milk solids for all Dairygold Milk Suppliers.

Get the latest news from the Farming Independent team 3 times a week.

Online Editors

For Stories Like This and More
Download the Free Farming Independent App