Dairygold has announced a 3.09c/l ex-VAT reduction to the base milk price it will pay for October’s supplies.
The cut takes the base price for last month’s milk down to 34.76c/l ex-VAT, with an additional 1.47c/l to suppliers qualifying for the co-op’s sustainability and quality payments.
Dairygold has said that actual solids delivered will see the co-op pay out 47.22c/l ex-VAT at average constituents.
“Dairy market sentiment remains weak, as very strong global milk supply continues to exceed demand, with supply growth coming from all the major exporting regions,” the co-op’s chair Pat Clancy said.
“This ongoing imbalance between supply and demand continues to negatively impact butter, cheese and milk powder returns, which is reflected in the futures markets for the foreseeable future.
“A change in the fundamental supply and demand dynamics is necessary to alter the current market outlook.”
Dairygold’s board has stated that it will continue to monitor dairy markets closely and review milk prices on a monthly basis.
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