Dairygold Increases July Milk Price to Encourage Production Amid Market Improvement
Source: DairyNews.today
Dairygold has announced an increase in its July quoted milk price by 2.0c/L, bringing the price to 44.5c/L, inclusive of VAT. This adjustment reflects standard constituents of 3.3% protein and 3.6% butterfat, as well as sustainability and quality bonuses.
For July 2024, this price equates to an average farm gate milk price of 49.8c/L, based on the actual milk solids achieved by Dairygold suppliers.
The cooperative also disclosed that the quoted milk price for July, adjusted to EU standard constituents of 3.4% protein and 4.2% butterfat, stands at 48.5c/L, inclusive of VAT. This increase is largely attributed to improved dairy market returns, particularly driven by rising butter prices.
Strategic Initiatives to Support Farmers:
A Dairygold spokesperson highlighted that the board is committed to encouraging its milk suppliers to maximize production for the remainder of the year. To further support this objective and help farmers bolster their winter fodder stocks, Dairygold has introduced a feed rebate of €15 per tonne on mainline feed products for four weeks starting from August 12, 2024. This initiative is designed to assist farmers in increasing their grass and fodder reserves, thereby enabling them to maximize milk volumes and improve margins as the year progresses.
The board emphasized its commitment to closely monitoring market conditions and reviewing milk prices on a monthly basis to ensure the continued support of its suppliers.
Looking Ahead:
Dairygold also confirmed plans to conduct a milk supplier census in September 2024, targeting the 2025-2030 period. This census will serve as a critical tool in shaping Dairygold’s strategic milk operations and commercial planning for the next six years. The results will provide valuable insights into the production ambitions of milk suppliers, guiding the cooperative in making informed decisions that will drive sustainable growth for both the suppliers and the society as a whole.
With this price increase and additional support measures, Dairygold aims to strengthen its partnership with suppliers, encouraging them to boost production while navigating the evolving market landscape.
The cooperative also disclosed that the quoted milk price for July, adjusted to EU standard constituents of 3.4% protein and 4.2% butterfat, stands at 48.5c/L, inclusive of VAT. This increase is largely attributed to improved dairy market returns, particularly driven by rising butter prices.
Strategic Initiatives to Support Farmers:
A Dairygold spokesperson highlighted that the board is committed to encouraging its milk suppliers to maximize production for the remainder of the year. To further support this objective and help farmers bolster their winter fodder stocks, Dairygold has introduced a feed rebate of €15 per tonne on mainline feed products for four weeks starting from August 12, 2024. This initiative is designed to assist farmers in increasing their grass and fodder reserves, thereby enabling them to maximize milk volumes and improve margins as the year progresses.
The board emphasized its commitment to closely monitoring market conditions and reviewing milk prices on a monthly basis to ensure the continued support of its suppliers.
Looking Ahead:
Dairygold also confirmed plans to conduct a milk supplier census in September 2024, targeting the 2025-2030 period. This census will serve as a critical tool in shaping Dairygold’s strategic milk operations and commercial planning for the next six years. The results will provide valuable insights into the production ambitions of milk suppliers, guiding the cooperative in making informed decisions that will drive sustainable growth for both the suppliers and the society as a whole.
With this price increase and additional support measures, Dairygold aims to strengthen its partnership with suppliers, encouraging them to boost production while navigating the evolving market landscape.