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HomeDairyProcessor to pay farmers over 52c/L
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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Processor to pay farmers over 52c/L

Aurivo Milk Price: Processor to pay farmers over 52c/L

Aurivo has, today (Wednesday, April 20th, 2022), confirmed its milk price for March 2022 supplies.

Its board has increased its base milk price by 3.5c and will pay a price of 47.97c/L inclusive of standard bonuses, VAT and a further 1.4c/L early calving bonus.

Aurivo milk price 

According to a statement that a spokesperson provided to That’s Farming on behalf of the processor, this converts to the equivalent of 52.41c/L at EU standard constituents 3.4 Prt/4.2 Bfat.

The spokesperson acknowledged that global dairy demand remains solid due to lower global supply.

Production costs 

However, they noted that “significant” increases in on-farm and factory production costs are off-setting this.

Teagasc echoed this in its revised ‘situation and outlook for Irish agriculture’ report, which the body published last week.

It said that on many farms, higher milk prices should offset higher feed, fertiliser, and fuel expenditure in 2022 relative to 2021.

It does not envisage an increase in milk production in 2022. However, it says that “favourable or adverse weather” would impact the outcome.

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The report states that “dairy cow numbers will continue to increase”. However, it adds that high input prices and uncertainty relating to the availability of farm inputs could depress milk yields.

It predicts that total milk production costs per litre in 2022 could rise by 30% on last year’s levels. However, it does acknowledge that the “degree of uncertainty that exists” makes this difficult to predict with “high” confidence.

According to Teagasc, the average Irish dairy farm could see a net margin per ha and income level in 2022, broadly in line with the 2021 figure.

However, it says that fixed milk price contracts, paying “well below” the spot milk price, will “adversely” impact incomes on some farms.

Overall, it states that the impact of the input and output price changes on incomes will be specific to farm circumstances.

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