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Irish Examiner
13 hours ago
- Business
- Irish Examiner
July marks the beginning of milk price drop from Co-ops
Co-ops have begun to drop their prices with their July milk pricing. The Dairygold Board have reduced the July quoted milk price by 1cpl to 48cpl, based on standard constituents of 3.3% protein and 3.6% butterfat, inclusive of Sustainability and Quality payments and Vat. This milk price will result in an average July farm gate milk price of 54.2cpl based on averages in milk solids from July 2025 achieved by Dairygold suppliers. The quoted milk price for July, based on EU Standard constituents of 3.4% protein and 4.2% butterfat, is 52.5cpl, inclusive of Vat. A company spokesperson said: 'Global supply continues to grow across the main exporting regions and is currently outpacing demand growth, with prices easing as a result. Ongoing geopolitical tensions and risks continue to pose a challenge to buyers in the immediate term, although recent announcements should bring clarity.' Kerry Dairy Ireland has set a price of 49.03cpl with Vat included for their July milk prices. This figure includes quality and sustainability bonuses. At EU Standard Constituents of 3.4% of protein and 4.20% butterfat, the milk price is 53.57cpl with vat included. Based on Kerry Dairy Ireland's average milk solids for July, the milk price return, inclusive of Vat, quality and sustainability bonuses, is 53.32cpl. 'Markets shifting' Kerry Group have said: 'Global dairy markets are shifting toward a supply-heavy position, with relatively strong milk output across key production regions outpacing demand growth. This imbalance is putting some downward pressure on commodity prices.' Tirlán have announced they will pay a total of 48.58cpl, including Vat, for July creamery milk supplies at 3.6% butterfat and 3.3% protein. Their July milk price consists of a base milk price of 48.08cpl (including Vat), a reduction of 0.5cpl from June's price. The sustainability Action Payment of 0.5cpl (including Vat) is also provided to all qualifying suppliers. The actual average price paid by Tirlán for July creamery milk, based on delivered constituents, will be 54.65cpl (including Vat). Tirlán Chairperson John Murphy said: 'Our farm gate price required some adjustment this month to move closer to market returns. Markets are in the quiet holiday period and prices are generally stable ahead of the resumption of seasonal buying activity.' Carbery group has also made the executive decision to drop its milk price for July. If the decision is replicated across the four West Cork co-ops — Bandon, Barryroe, Drinagh and Lisavaird — this will result in an average milk price of 50.02cpl, inclusive of Vat, a 0.5cpl Somatic Cell Count (Scc) bonus and FutureProof sustainability bonus. Important to note is that the base milk price adjustment, SCC and FutureProof bonus figures above are quoted excluding Vat. Please note the FutureProof bonus available for 2025 has increased by 0.25cpl to a total of 1.25cpl. A spokesperson for Carbery said: "Milk supply has strengthened globally, and this, combined with uncertainty around tariffs and global trade performance, is causing markets and commodity prices to soften. We continue to monitor global markets with the aim of delivering the best milk price possible to our shareholders, in line with market performance.'
Irish Examiner
23-05-2025
- Business
- Irish Examiner
April milk prices confirmed by co-ops
The milk price for April has been confirmed by Dairygold, Carbery, Tirlán, and Lakeland Dairies. Dairygold has maintained the April quoted milk price at 50cpl, based on standard constituents of 3.3% protein and 3.6% butterfat, inclusive of sustainability and quality payments and VAT. This price equates to an average of 54.6cpl farm gate milk price based on the average solids achieved in April by milk suppliers. The quoted price for April was based on EU Standard constituents of 3.4% protein and 4.2% butterfat, and is 54.5cpl, inclusive of VAT. A spokesperson for Dairygold commented that 'global milk production continues to be relatively steady, but buyers remain cautious amid the threat of tariffs… Butter prices have maintained their strong price levels, although other dairy products have been less robust.' Carbery has maintained its milk price for the month of April. If this is carried across the four West Cork co-ops, Bandon, Barryroe, Drinagh, and Lisavaird, this will result in an average milk price of 52.12cpl, inclusive of VAT, 0.5cpl somatic cell count (SCC) bonus, and the FutureProof sustainability bonus. The base milk price adjustment for SCC and the FutureProof bonus figures are quoted excluding VAT. The total FutureProof bonus available in 2025 is 1.25cpl, an increase of 0.25cpl. Similarly to the Dairygold spokesperson regarding uncertainty of tariffs, Carbery have said "wider uncertainty around the outlook for global markets in the face of potential tariffs is somewhat impacting dairy market performance'. Tirlán will pay a total of 50.08cpl, including VAT, for April milk supplies at 3.6% butterfat and 3.3% protein. The April milk price consists of the base milk price of 49.58 cpl (including VAT), which is unchanged from March, and the sustainability action payment of 0.5 cpl (including VAT) to all qualifying suppliers. Both payments will be adjusted based on the actual constituents of milk delivered by farmers. The actual average price paid by Tirlán for April creamery milk, based on delivered constituents, will be 54.99 cpl (including VAT). Tirlán chairperson, John Murphy, said: 'While dairy markets are relatively stable, there has been a decline in returns for some individual products. We are pleased to be able to maintain farm gate milk price at over 50 cent per litre for the high-volume month of April. "The outcome of trade discussions over the coming period is likely to impact market direction. Consumer reaction to higher prices will also need to be closely watched.' Lakeland Dairies has also left the price of milk unchanged for milk supplied in April. The base price of 48.75cpl for constituents of 3.6% butterfat and 3.3% protein, a retention of last month's price. This price is inclusive of the 0.5cpl sustainability incentive payment. Lakeland Dairies has said that although there are geopolitical tensions and uncertainty surrounding the economic performance of dairy, the supply-demand dynamic remains largely in balance, which is providing market stability.
