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Dairygold latest to hike milk price as markets remain strong

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The increase in milk price is down to "continued strength in milk markets," according to Dairygold.

The increase in milk price is down to "continued strength in milk markets," according to Dairygold.

The increase in milk price is down to "continued strength in milk markets," according to Dairygold.

Dairygold has increased its milk price to 53c/L for May milk, up 2.5c/L on the April milk price. It comes after Lakeland and Glanbia increased their milk prices by 2c/L in recent days.

The increase in milk price is down to "continued strength in milk markets," and equates to an average May farm gate milk price of 57.2c/L, based on average May milk solids, according to the processor.

“The increase in milk price reflects the ability of the society to return a strong milk price to suppliers from continued strength in milk markets.

"This strength is driven by global demand for dairy ingredients and supply constraints in major milk producing regions. The society recognises the significant increases in input costs to suppliers this year and will continue to maximise the value of milk returns to address this challenge. As, is customary, the Dairygold Board will continue to monitor markets closely and review milk price on a month by month basis.”

Earlier this week Lakeland Dairies announced it will increase its price for May milk by 2c/L in the Republic of Ireland.

Lakeland said its 52.10c/L is inclusive of VAT and is based on milk constituents at 3.6pc fat and 3.3pc protein.

According to Lakeland, in ROI, on average, this equates to 54.47c/L for May milk.

In ROI, all fixed milk price contracts will receive an 8c/L supplementary payment.

In Northern Ireland, Lakeland Dairies has increased its milk price by 1.5p/L to 41.5p/L.

On average, it says it will pay out 43.03p/L for May milk in Northern Ireland including adjustments for constituents and quality, and volume bonuses and zero cartage charges.

In Northern Ireland, all fixed milk price contracts will receive a 7p/L supplementary payment.

Lakeland says dairy markets remain firm as tighter global supplies trail current demand trends.

The processor says inflation is affecting farmers, processors and food manufacturers at every level. Market sentiment is becoming more challenged as rising costs affect all categories of goods and services and the war in Ukraine has continuing far reaching impacts.

The markets will continue to provide good returns for the foreseeable future.

Glanbia Co-op also announced an increase of 2c/L for May milk supplies bringing it up to 52.08 c/L (including VAT) for milk at 3.6pc butterfat and 3.3pc protein.

The Glanbia base milk price for May is 46.58c/L (including VAT) with the Agri-Input Support Payment increased by 2c/L to 5c/L while a Sustainability Action Payment of 0.5c/L (including VAT) is being paid monthly on all milk supplied in 2022.

Glanbia Co-op Chairman John Murphy said: “Dairy markets continue to perform at a high level, with a balance between reduced global milk supply and some inflationary pressures impacting on consumer demand in certain markets.

“In light of the ongoing high farm input costs, the Board has decided to increase the Agri-Input Support payment to 5 cpl for this month. It is not currently envisaged that the Agri-Input Support Payment will increase beyond this level.

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