Dairygold and Kerry have announced cuts to their prices for August milk supplies.
The Dairygold board has reduced the August quoted milk price by 2.85c/l to 42.81c/l excluding VAT, based on standard constituents of 3.3% protein and 3.6% butterfat, 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.
“Increased global milk supply and weaker consumer sentiment have seen key Dairygold products, especially butter and cheese, fall by well over 3c/l.
“The speed, timing and extent of the market falls is challenging, as they emerge after the peak processing period, with seasonally higher stock levels exposed to these declining market returns. There is evidence in the marketplace of inventory being off-loaded, putting further pressure on returns,” Clancy said.
Dairy market futures show no immediate signs of recovery over the coming months, and our priority now must be to take decisive action and realign our milk price with market returns, the Dairygold chair said.
“Meanwhile, Dairygold continues its focussed reduction in spend, including capital expenditure, and delivering our business optimisation programme to deliver optimum efficiency, cost competitiveness and margin enhancement.
“The Dairygold board continues to monitor markets closely and will review milk price on a monthly basis.”
Kerry
Kerry reduced its milk price by 1.5c/l on Tuesday to 45.22c/l, excluding VAT, but inclusive of quality and sustainability bonuses. The base price for the month is 43.86c/l, excluding VAT.
The Kerry Dairy Ireland Plant in Charleville, Co Cork. \ Donal O'Leary
“EU dairy commodity prices, particularly butter and cheese, have dropped sharply,” a Kerry spokesperson said.
“The decline is driven by strong milk production across key exporting countries and weaker demand. Prices are likely to remain under pressure in the near term unless demand improves.”
GDT
Meanwhile, prices at Tuesday’s Global Dairy Trade auction fell by 0.8% to an average price of €3,434/t.
Whole milk powder prices fell by 0.8% to average €3,221/t, while skim milk powder prices dropped by 0.3% to average €2,222/t.
Butter prices also took a tumble, falling by 0.8% to an average of €5,858.
Mozzarella prices tanked by 9.6% to fall to an average of €3,281/t.
Dairygold and Kerry have announced cuts to their prices for August milk supplies.
The Dairygold board has reduced the August quoted milk price by 2.85c/l to 42.81c/l excluding VAT, based on standard constituents of 3.3% protein and 3.6% butterfat, 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.
“Increased global milk supply and weaker consumer sentiment have seen key Dairygold products, especially butter and cheese, fall by well over 3c/l.
“The speed, timing and extent of the market falls is challenging, as they emerge after the peak processing period, with seasonally higher stock levels exposed to these declining market returns. There is evidence in the marketplace of inventory being off-loaded, putting further pressure on returns,” Clancy said.
Dairy market futures show no immediate signs of recovery over the coming months, and our priority now must be to take decisive action and realign our milk price with market returns, the Dairygold chair said.
“Meanwhile, Dairygold continues its focussed reduction in spend, including capital expenditure, and delivering our business optimisation programme to deliver optimum efficiency, cost competitiveness and margin enhancement.
“The Dairygold board continues to monitor markets closely and will review milk price on a monthly basis.”
Kerry
Kerry reduced its milk price by 1.5c/l on Tuesday to 45.22c/l, excluding VAT, but inclusive of quality and sustainability bonuses. The base price for the month is 43.86c/l, excluding VAT.
The Kerry Dairy Ireland Plant in Charleville, Co Cork. \ Donal O'Leary
“EU dairy commodity prices, particularly butter and cheese, have dropped sharply,” a Kerry spokesperson said.
“The decline is driven by strong milk production across key exporting countries and weaker demand. Prices are likely to remain under pressure in the near term unless demand improves.”
GDT
Meanwhile, prices at Tuesday’s Global Dairy Trade auction fell by 0.8% to an average price of €3,434/t.
Whole milk powder prices fell by 0.8% to average €3,221/t, while skim milk powder prices dropped by 0.3% to average €2,222/t.
Butter prices also took a tumble, falling by 0.8% to an average of €5,858.
Mozzarella prices tanked by 9.6% to fall to an average of €3,281/t.
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