Milk suppliers are expected to receive an increase in the price paid for supplies in March, this was the announcement made by Dairygold. The company has increased the March quoted milk price by 3.5c/L to 46.5c/L, based on standard constituents of 3.3% protein and 3.6% butterfat, inclusive of bonuses and VAT.
Dairygold has also outlined that the March 2023 early-calving bonus of 1c/L (excluding VAT) will be paid on milk supplied in March in accordance with milk quality criteria, giving a total milk price of 47.5c/L. The processor says that this milk price equates to an average March farmgate milk price of 51.5c/L, based on average March milk solids achieved by Dairygold milk suppliers.
A Dairygold spokesperson commented that “the weakened supply from all major milk-producing regions and the increase in dairy demand has driven further strength in global dairy markets.” Commenting on the effects of the war in Ukraine, the spokesperson says “the situation remains under constant review. As is customary, the Dairygold board will continue to monitor markets closely and review milk price on a month by month basis.”
Last week, the company reported a strong performance in its financial results for 2021. The company delivered a turnover of €1.17 billion, an increase of 15% or roughly €152 million on the 2020 figure, with an operating profit of €30.4 million, reflecting an increase of €4.4 million.