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HomeDairyFifth processor sets December milk price
Catherina Cunnane
Catherina Cunnanehttps://www.thatsfarming.com/
Catherina Cunnane hails from a sixth-generation drystock and specialised pedigree suckler enterprise in Co. Mayo. She currently holds the positions of editor and general manager at That's Farming, having joined the firm during its start-up phase in 2015.
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Fifth processor sets December milk price

Aurivo has announced its December 2021 milk price, becoming the fifth processor to do so.

Its announcement yesterday (Tuesday, January 18th, 2022) follows Lakeland Dairies’, Glanbia’s,  Kerry Group’s and Dairygold’s.

Aurivo December 2021 milk price:

In a statement to That’s Farming this afternoon, a spokesperson for the milk processor said:

“The board of Aurivo has increased November’s milk price by 1 cent to 40c/L, inc of standard bonuses & VAT.”

“This converts to the equivalent of 43.85c/L at EU standard constituents 3.4 Prt/4.2 Bfat.  Global dairy demand remains strong with a positive outlook.”

“Share standard paying suppliers will also receive 1.5c/L (VAT inclusive) bonus for all milk supplied in January, February, and March 2021 in this month’s payment.”

Dairygold’s milk price

Dairygold also confirmed its December 2021 milk price yesterday.

In a statement to That’s Farming this afternoon, a spokesperson for the milk processor said:

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“Dairygold has increased the December quoted milk price by 1.0c/L to 40.5c/L, based on standard constituents of 3.3% protein and 3.6% butterfat, inclusive of bonuses and VAT.”

“This milk price equates to an average December farm gate milk price of 50.9c/L. This is based on average December milk solids, Dairygold milk suppliers achieved.”

“The quoted milk price for December based on EU standard constituents of 3.4% protein and 4.2% butterfat is 44.2c/L.”

The spokesperson said that dairy demand “remains strong” and dairy ingredient prices have “continued to firm” in recent weeks.

The Dairygold board will continue to monitor markets closely and review milk prices monthly.  

Dairying in 2022

Last month, Teagasc published its Outlook 2022, Economic Prospects for Agriculture.

It outlines that the annual average Irish milk price in 2022 is forecast to be in line with 2021.

The report states this would represent an annual average milk price of around 40.6c/L (actual fat and protein VAT inclusive).

“Growth in Irish milk production of just 2% is forecast in 2022, as producers focus on containing cost increases,” the report added.

In 2022, it expects total milk production costs to increase by 15% per hectare and by 13% per litre.

“With output value expected to increase by 2% in 2022, the increase in costs is forecast to lead to lower margins.”

“The forecast average net margin per hectare in 2022 is €1,487. This is a decrease of 20% relative to 2021,” the economists added.

Read more.

See more milk price announcements

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