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Tuesday, August 16, 2022

Leading milk processor announces increase in June milk prices as global milk markets see continued strength

DairyGold yesterday became the latest milk processor to raise the price of its milk for June supplies by 2.5c/L from May to 55.5cpl.

Equivalent to the average June Farm Gate milk price of 60.3c/L on an average June milk solids basis.

This comes after both Glanbia and Lakeland Dairy increased the prices of their June milk by 3c/L and Kerry Group increased its prices by 2c/L.

According to the processor, the latest price hike is attributed to continued strength in global milk markets and strong demand for dairy ingredients due to limited milk supply growth from major dairy producing regions.

According to DairyGold spokesperson, the increased milk price also reflects a significant increase in input cost for milk suppliers this year.

Earlier this week, Glanbia announced it would pay 55.08c/L (including VAT) for June milk, up 3c/L from last month.

This is divided into a basic milk price of 49.58c/L (inclusive of VAT), a farm-input support payment of 5c/L on all milk supplied in June and a Sustainability Action payment of 0.5c/L (inclusive of VAT) , which is being paid monthly on all milk supplied in 2022 in recognition of the specific sustainability work being done on the farm.

Meanwhile, Lakeland Dairy has announced that it will pay an increased milk price of 55.1c/L (including VAT) for June milk in the Republic of Ireland. This is also an increase of 3c/L from the price of May milk.

On average, Lakeland Dairies will pay 57.88c/L for June milk in ROI, with all fixed milk price contracts receiving an 8c/L supplementary payment.

Last week, the Kerry Group also announced that its base price for June milk would increase to 53.5c/L (inclusive of VAT). This is 2c/L up on the price of May milk.

global dairy business

The increase in milk prices paid for by Irish processors comes as EU milk collections for May, which is usually the peak month of milk production, according to ASB, one of New Zealand’s major commercial banks,’ was very weak.

However, it also noted that milk powder prices fell overnight in the Global Dairy Trade Auction. A 5.6 per cent fall in whole milk powder and an 8.6 per cent fall in skim milk powder brought down the overall price index by 5 per cent.

The bank said this is due to the ongoing energy crisis, drought, rising cost of living and other adverse agricultural economic constraints.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
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