Dairygold has become the third milk processor to announce its price for October 2021 supplies.
This follows announcements from Lakeland Dairies and Kerry Group.
In a statement to That’s Farming on Wednesday, November 17th, 2021, a spokesperson for Dairygold said:
“Dairygold has increased the October quoted milk price by 1cpl to 38.0cpl, based on standard constituents of 3.3% Protein and 3.6% Butterfat, inclusive of bonuses and VAT.
“This milk price equates to an average October farm gate milk price of 49.0cpl, based on average October milk solids, achieved by Dairygold milk suppliers.”
“The quoted milk price for October based on EU standard constituents of 3.4% protein and 4.2% butterfat is 41.5cpl.”
“Dairy markets remain buoyant with global milk supplies more constrained leading to firmer returns across the basket of dairy commodities.”
“As is customary, the Dairygold board will continue to monitor markets closely and review milk price on a month-by-month basis.”
Dairygold’s September milk price
Meanwhile, the processor increased its price by 0.75cpl to 37.00cpl for September 2021 milk supplies.
This was based on standard constituents of 3.3% protein and 3.6% butterfat, inclusive of bonuses and VAT.
This milk price equated to an average September farm gate milk price of 44.7cpl. This was based on the average September milk solids Dairygold milk suppliers achieved.
It based its quoted milk price for September on EU Standard constituents of 3.4% protein, and 4.2% butterfat is 40.4c/L.
In a statement last month, a spokesperson for the processor, said:
“Global milk supply has eased over the past few months, and the supply outlook to year-end will be more modest.”
“Combined with Covid-19 recovery continuing, dairy demand has picked up in recent weeks, with markets firmer.”
October milk prices must be above 40c/L
Earlier this month, the ICMSA said expects milk processors to pay above 40c/L for October 2021 milk supplies.
Its dairy committee, chairperson, Gerald Quain, said current and future milk prices will have to reflect full production costs, along with a fair reward for farmers.
“Milk production is going to become significantly more expensive in 2022. No-one could or should expect that they could continue making the farmer-suppliers carry the increased costs.”
He said the farm group has been pointing out for years that the transition to greater sustainability was “going to mean an end to the cheap food era”.
“Retailers and consumers are going to have to begin paying what it actually costs to get that product to their fridge.”
“The days when a milk price in the low 30s was considered a good price for farmers are well and truly finished.”
“Milk price for October is going to be above 40c/L”, he concluded.
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