Dairygold Announces Net Increase in Milk Price for May Amid Market Volatility
Source: The DairyNews
Dairygold has declared a net increase in the milk price for its suppliers following the discontinuation of its weather/fodder relief payment. The processor will raise its milk price by 2 cents per liter, with the removal of the 1 cent per liter relief payment resulting in a net increase of 1 cent per liter, setting the new quoted price at 42 cents per liter. This adjustment reflects standard milk constituents of 3.3% protein and 3.6% butterfat and includes value-added components such as VAT, sustainability, and quality bonuses.
For May 2024, Dairygold's adjustments translate to an average farmgate milk price of 45.2 cents per liter, a figure based on the average milk solids achieved by Dairygold suppliers during the month. A spokesperson from Dairygold emphasized the strategic decision behind the price adjustment, stating, "The Dairygold board recognizes the need to set a competitive milk price to encourage our suppliers to maximize production for the rest of the year, especially after the significant challenges posed by recent adverse weather conditions."
Despite the price increase, the company remains cautious about the future. "While there has been an improvement in dairy market returns, primarily driven by butter prices, the ongoing weak demand and steady global milk supply continue to create uncertainty regarding future pricing," the spokesperson added.
Despite the price increase, the company remains cautious about the future. "While there has been an improvement in dairy market returns, primarily driven by butter prices, the ongoing weak demand and steady global milk supply continue to create uncertainty regarding future pricing," the spokesperson added.
