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Ireland 16.01.2024

Dairygold Sets Positive Tone with December Milk Price Increase

Source: The DairyNews
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In a move reflecting improving global market dynamics, Dairygold has revealed its final monthly milk price for December 2023. Following the recent announcement by Lakeland Dairies, Dairygold confirmed a noteworthy increase of 1.5c/L, setting the new quoted milk price at 37c/L.
Dairygold Sets Positive Tone with December Milk Price Increase
This calculation, inclusive of sustainability and quality bonuses along with VAT, is based on standard constituents of 3.3% protein and 3.6% butterfat.

According to Dairygold, the resulting average December farmgate milk price stands at 46.9c/L, factoring in the average December milk solids achieved by the processor's suppliers. A Dairygold spokesperson attributed the positive adjustment to the ongoing rebalance of supply and demand in global milk markets. Despite the optimistic outlook for future markets, caution prevails, and the Dairygold board commits to vigilant monthly reviews of milk prices.

In tandem, Lakeland Dairies also responded with an upward adjustment, increasing its December milk price by 1.15c/L. For milk supplied from the Republic of Ireland, a base price of 37.15c/L (3.6% butterfat and 3.3% protein) is set, accompanied by a 5c/L out-of-season payment for qualifying farmers. Northern Ireland suppliers will see a 1p/L increase, resulting in a base price of 30.25p/L, with a 3p/L out-of-season payment.

Both processors maintain a cautious yet optimistic stance, acknowledging the favorable trends in global dairy markets but underscoring ongoing uncertainties. Lakeland Dairies emphasized the delicately poised nature of the markets as they navigate through 2024.

These price adjustments come on the heels of Bord Bia's recent revelation of Irish dairy export performance in 2023. The €6.3 billion value, although down nearly 8% from the previous year, showcased mixed dynamics, with declines in butter offset by increases in cheese, specialist nutritional powders, yoghurt, and whole milk powder.

As challenges like adverse weather conditions impacted milk collections in Ireland, resulting in a nearly 2% decline from 2022 levels, industry players remain vigilant in navigating a market landscape shaped by both opportunities and uncertainties.
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