Two processors have followed Lakeland Dairies’ lead, setting their milk price for April 2023 supplies.
Dairygold has reduced the April quoted milk price by 2.0cpl to 40.0cpl, based on standard constituents of 3.3% protein and 3.6% butterfat, inclusive of sustainability and quality bonuses and VAT.
The April milk price equates to an average April farm gate milk price of 43.1cpl, based on average April milk solids achieved by Dairygold milk suppliers.
The quoted milk price for April based on EU standard constituents of 3.4% protein and 4.2% butterfat is 43.6cpl.
A company spokesperson commented that “there continued to be a weakness in global dairy ingredient markets over the last number of weeks”.
“This is driven by a reduction in demand in certain markets and products driven by previous high prices.”
“There are some indications that markets are stabilising, but it remains to be seen if this is sustained across peak supply.”
“The Dairygold board will continue to monitor markets closely and review milk price on a month-by-month basis,” the spokesperson added.
Kerry Group milk price
Meanwhile, the Kerry Group base price for April milk supplies is 38 cent per litre (Vat Inc) at 3.30% Prot/3.60% Bfat and 41.70 cent per litre (Vat Inc) at EU standard constituents 3.40% Prot/4.20% Bfat.
Based on Kerry’s average milk solids for April, the milk price return inclusive of VAT and bonuses is 40.12 cent per litre.
A spokesperson for the milk processing company told this publication:
“Although milk supply in Europe is decreasing and is projected to decline further, there is an increase in milk production from exporting countries in other parts of the world.”
“The demand outlook is varied but currently not robust enough to drive an increase in dairy commodity prices,” the spokesperson added.
Lakeland Dairies became the first processor to set its milk price for April 2023 supplies, with a further 4c/L cut to suppliers’ cheques.
In a statement to That’s Farming, a spokesperson confirmed the co-operative’s decision to reduce milk price, a move which they say is “reflecting ongoing market conditions”.
In the Republic of Ireland, Lakeland Dairies has reduced the milk price by 4 cent/litre to 38.85 cent/litre of VAT, for milk at 3.6% fat and 3.3% protein.
The April price includes an input support payment of 1.5 cent/litre, inclusive of VAT, for all suppliers.
Meanwhile, in Northern Ireland, Lakeland Dairies has reduced the milk price 3.5p/litre to 31.5p/litre.
The April price includes a supplementary input support payment of 1.
Read more about milk prices.