A number of milk processors have, this week, set their price for July 2023 supplies.
Among them making announcements this week were Tirlán, Kerry Group, Dairygold, Carbery and Arrabawn following Lakeland Dairies on Friday, August 11th, 2023, as reported by us in this news article.
Tirlán
Tirlán will pay a total of 35.58 cent per litre (cpl) (including VAT) for July creamery milk supplies at 3.6% butterfat and 3.3% protein.
The July milk price of 35.58 cpl (including VAT) is down 2.5 cpl from June and consists of the following:
- Base milk price of 31.58 cpl (including VAT);
- Support Payment of 3.5 cpl (including VAT);
- Sustainability Action Payment of 0.5 cpl (including VAT) to all qualifying suppliers.
The base price, Support Payment and Sustainability Action Payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.
The Tirlán total price for July creamery milk, based on LTO constituents of 4.2% butterfat and 3.4% protein, is 38.70 cpl (including VAT).
Tirlán chairperson, John Murphy, said that dairy markets continue to “weaken” which regrettably has necessitated reductions in base price.
“We recognise the challenges of the current high-cost operating environment at farm level and significant supports have been provided to assist farmers as the market moved sharply downwards from historical highs.”
“The board has agreed to provide a further 3.5 cpl to support our farmers’ milk price for the month of July.”
Murphy added that the overall outlook for the global marketplace “remains challenging” and the board will “keep a close watch on developments” on a monthly basis.
It paid a total of 38.08 cent per litre (cpl) (including VAT) for June creamery milk supplies at 3.6% butterfat and 3.3% protein.
The June milk price of 38.08 cpl (including VAT) is down 2 cpl from May and consists of the following:
- Base milk price of 34.58 cpl (including VAT);
- Support Payment of 3 cpl (including VAT);
- Sustainability Action Payment of 0.5 cpl (including VAT) to all qualifying suppliers.
Kerry Group
Meanwhile, the Kerry Group milk price for July milk supplies is 37 cent per litre (Vat Inc) at 3.30% Prot/3.60% Bfat, consisting of a base price of 34 cent per litre (Vat Inc) and a milk contract payment of 3 cent per litre (Vat Inc) on all qualifying milk volumes in the month.
Its July milk price at EU standard constituents (3.4% Prot/4.2% Bfat) is 40.61 cent per litre, according to a statement from the processor.
Based on Kerry’s average milk solids for July, the milk price return inclusive of VAT and bonuses is 40.19 cent per litre.
The outlook on commodity dairy continues bearish with further downward pressure on European and global pricing, the statement added.
The spokesperson noted that “dairy demand continues to struggle with no sign currently of any near-term correction”.
“On the supply side, milk production across the major exporters continues in weak positive territory with volumes more than enough to meet subdued demand,” the spokesperson concluded.
Its price for June milk supplies was 37c/L (Vat Inc) at 3.30% Prot/3.60% Bfat and 40.61 cent per litre (Vat Inc) at EU Standard Constituents 3.40% Prot/4.20% Bfat.
Based on Kerry’s average milk solids for June, the milk price return inclusive of VAT and bonuses was 39.01 cent per litre.
Dairygold
Meanwhile, Dairygold has also confirmed its July 2023 milk price with a reduction of 2.0cpl to 36.0cpl, based on standard constituents of 3.3% Protein and 3.6% Butterfat, inclusive of Sustainability and Quality bonuses and VAT.
The July milk price equates to an average July farm gate milk price of 40.3cpl, based on average July milk solids, achieved by Dairygold milk suppliers.
The quoted milk price for July based on EU Standard constituents of 3.4% protein and 4.2% butterfat is 39.3pl.
A company spokesperson commented, “that global milk markets continue to weaken due to pressure on demand in key markets, with no sign of near-term correction”.
“The Dairygold board will continue to closely monitor markets and review milk price on a month-by-month basis,” the spokesperson added.
Its June quoted milk price was back by 2c/L to 38c/L, based on standard constituents of 3.3% Protein and 3.6% butterfat, inclusive of sustainability and quality bonuses and VAT.
The June milk price equated to an average June farm gate milk price of 40.9cpl, based on average June milk solids, achieved by Dairygold milk suppliers.
Carbery
Carbery has also reduced its base milk price for July by 2c/L.
It is continuing to support milk price from its Stability Fund and is allocating 3c/L support for July milk.
If this decision is replicated across the four West Cork co-ops; Bandon, Barryroe, Drinagh and Lisavaird, this will result in an average price for July of 38.05cpl, inclusive of VAT and 0.5cpl Somatic Cell Count (SCC) bonus.
A spokesperson for Carbery stated that “milk price continues to be impacted by poorly performing dairy markets, and expected demand recovery has not yet materialised”.
Arrabawn
Arrabawn has also confirmed a cut from its 39.69c/L base in June to 38c/L for July milk supplies, based on 3.3% protein and 3.6% butterfat.
According to the processor, its price equates to 41.22c/L, including VAT at EU standard constituents, 3.4% protein and 4.2% butterfat.
Its average price for July, inclusive of VAT and bonuses is 40.79c/L.
A spokesperson noted that “dairy markets continue to remain weak” and Arrabawn “will continue to monitor the markets in the coming weeks”.
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