Dairygold says March milk price cut is 'regrettable but unavoidable'
Dairygold has confirmed that it has reduced its milk price (for March milk supplies) by 2c/L to 32c/L inclusive of 0.5c/L quality bonus and VAT, based on standard constituents of 3.3pc Protein and 3.6pc Butterfat.
It said that the milk price reduction is regrettable, but unavoidable, as farm gate milk prices continue to be well ahead of market returns.
Since Quarter 4 2017, the global market is returning significantly less than the milk price paid to milk suppliers, a situation that has continued through 2018 to date.
Today, the New Zealand Global Dairy Trade Index rise by 2.7pc, with prices for Skimmed Milk Powder up 3.6pc. It's the first time since February 6 it saw an overall upwards trend in prices.
Dairygold, also said that to support its members, a special weather/fodder relief payment of 2c/L plus VAT, on all March milk supplied (including Fixed Price Milk Schemes), will be paid to its milk suppliers. The payment will be included in the March monthly milk payment paid later this week.
It said that the fodder relief payment has been introduced by the Dairygold Board in response to the serious challenges faced by its Member Milk Suppliers in recent weeks as they sought to manage their farming enterprises in the face of unprecedented weather conditions and diminishing fodder supplies.
Since April 5, Dairygold has imported more than 5,000t of fodder from the UK which has been distributed to over 1,000 members across its Munster catchment area. It continues to support Members in need of forage as the shortage continues.
It also said that regarding concentrate feed, despite the increased cost of raw materials over the past two months, Dairygold has supported its ruminant feed customers by not passing back such cost increases to date.