Dairygold has increased its June quoted milk price by 0.5c/L to 42.5c/L.
This is based on on standard constituents of 3.3% protein and 3.6% butterfat, inclusive of sustainability and quality bonuses and VAT.
According Dairygold the June milk price equates to an average farm gate milk price of 46.1c/L, based on the average June 2024 milk solids, achieved by Dairygold milk suppliers.
The co-op also detailed that the quoted milk price for June, based on EU standard constituents of 3.4% protein and 4.2% butterfat, is 46.4c/L, inclusive of VAT.
In May the co-op’s quoted milk price was 42c/L – based on standard constituents of 3.3% and 3.6% butterfat, and included VAT and sustainability and quality bonuses.
Dairygold
A spokesperson for the co-op said today (Wednesday, July 17) that the Dairygold board “recognises the importance of continuing to provide confidence to milk suppliers, to encourage them to maximise their milk production for the second half of the year”.
The Dairygold spokesperson added: “While dairy market returns marginally improved in May and June, driven primarily by butter prices, there remains uncertainty in relation to future dairy market prices, due to continuing weaker demand, with China remaining a particular concern, and global milk supply continuing to be generally flat.”
The Dairygold board has said that it “will continue to monitor markets closely and review milk price on a monthly basis”.
GDT
The Global Dairy Trade (GDT) index recorded a very slight recovery in the latest trading auction yesterday (Tuesday, July 16), following on from the sharp decline two weeks ago.
The latest increase of 0.4% came on the back of a 6.9% decrease on July 2.
After yesterday’s event 360 – the index figure stands at 1,081, up from 1,077 two weeks. The latest index figure reflects a price of €3,518 per metric tonne (mt).
The dollar-to-euro conversion was based on an exchange rate of around $1 to €0.92, which was the exchange rate recognised by the European Central Bank yesterday.
Milk prices
Earlier this month the board of Lakeland Dairies confirmed that the price for milk supplied in June will see an increase in its base price from last month.
A base price of 43.5c/L – based on 3.6% butterfat and 3.3% protein – will be paid for June milk in the Republic of Ireland. The base price includes the 0.5c/L Sustainability Incentive Payment.
The board of Lakeland Dairies has also decided that in Northern Ireland, a base price of 35.8p/L will be paid for milk supplied in June. This is also inclusive of the 0.5p/L Sustainability Incentive Payment.
Meanwhile the Ornua Monthly Purchase Price Index (PPI) for the month of June now stands at 140.8, up from the previous month at 135.6.
The latest PPI implies an indicative return of 41.5c/L, inclusive of VAT, for milk at 3.6% fat and 3.3% protein which is net of Ornua’s costs to market.
This represents an increase of 1.9c/L from the previous month of 39.6c/L. Ornua said this reflects improved market returns through the month of June.
