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The processor hiked its milk price by 2.0 cents per liter to reach 40.0 cents per liter, calculated based on standard constituents of 3.3% protein and 3.6% butterfat.
This quoted milk price for February encompasses sustainability and quality bonuses along with VAT, according to the processor’s statement.
Moreover, an early calving bonus of 2.1 cents per liter, including VAT, will be disbursed on February milk supplies, subject to meeting specific milk quality criteria.
As a result, Dairygold raised the attainable milk price for February to 42.1 cents per liter at standard constituents.
Dairygold’s move translates to an average farm gate milk price of 47.7 cents per liter, considering the average February 2024 milk solids achieved by suppliers.
When considering EU standard constituents of 3.4% protein and 4.2% butterfat, the milk price stands at 45.7 cents per liter, inclusive of the early calving bonus and VAT.
Commenting on the market dynamics, a company spokesperson stated, “Dairy market prices have marginally improved recently, primarily due to a decrease in global milk supply, but with demand remaining challenging, future pricing forecasts remain uncertain.”
“The Dairygold board felt that it was important to set a strong milk price to provide confidence to milk suppliers as the peak milk production season approaches.”
The spokesperson further assured, “The Dairygold board will continue to monitor markets closely and review milk price on a monthly basis.”
Source: Dairynews