Dairygold’s cut in milk price for August supplies has been described as “unjustified and unwarranted” by the Irish Creamery Milk Suppliers Association (ICMSA).
On Tuesday, the board of Dairygold moved to pull 2.85c/l, excluding VAT, off the price, resulting in a quoted milk price of 42.81c/l, excluding VAT, inclusive of sustainability and quality payments.
Dairygold chair Pat Clancy said that there has been a "dramatic deterioration" in global dairy prices over the last three to four weeks.
ICMSA dairy committee chair Noel Murphy said that the reaction to the cut is overwhelmingly negative and the board should reconsider the decision.
Relatively stable month
He said that while dairy markets have weakened in recent weeks, August was a relatively stable month and that it was the ICMSA’s firm view that milk price should be at least 47c/l for the month.
He said that a gap has now opened relative to other milk processors which have already set August milk price at a higher level and he described the Dairygold milk price as very disappointing and unreflective of the market reality for August milk.
“To put in context, a 3c/l cut for August milk will cost a typical 500,000-litre supplier around €1,500 for that month alone and that is hugely significant. We’d urge the board to reconsider its position and deliver a milk price in line with other processors,” he said.
Kerry and Lakeland also cut the price for August supplies.
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Dairygold and Kerry cut milk prices as GDT falls
Most co-ops cut July milk price
Dairygold’s cut in milk price for August supplies has been described as “unjustified and unwarranted” by the Irish Creamery Milk Suppliers Association (ICMSA).
On Tuesday, the board of Dairygold moved to pull 2.85c/l, excluding VAT, off the price, resulting in a quoted milk price of 42.81c/l, excluding VAT, inclusive of sustainability and quality payments.
Dairygold chair Pat Clancy said that there has been a "dramatic deterioration" in global dairy prices over the last three to four weeks.
ICMSA dairy committee chair Noel Murphy said that the reaction to the cut is overwhelmingly negative and the board should reconsider the decision.
Relatively stable month
He said that while dairy markets have weakened in recent weeks, August was a relatively stable month and that it was the ICMSA’s firm view that milk price should be at least 47c/l for the month.
He said that a gap has now opened relative to other milk processors which have already set August milk price at a higher level and he described the Dairygold milk price as very disappointing and unreflective of the market reality for August milk.
“To put in context, a 3c/l cut for August milk will cost a typical 500,000-litre supplier around €1,500 for that month alone and that is hugely significant. We’d urge the board to reconsider its position and deliver a milk price in line with other processors,” he said.
Kerry and Lakeland also cut the price for August supplies.
Read more
Dairygold and Kerry cut milk prices as GDT falls
Most co-ops cut July milk price
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