Dairygold has increased its quoted milk price for August by 0.5c/L to 39c/L, based on standard constituents of 3.3% protein and 3.6% butterfat and inclusive of sustainability and quality payments and VAT. On the average milk solids its suppliers actually delivered, the co-op says that equates to an average farm-gate price of 46.7c/L for the month; on EU standard constituents of 3.4% protein and 4.2% butterfat the quoted price is 42.8c/L including VAT.

"Dairy market sentiment has continued to improve in recent weeks, supported primarily by protein and cheese returns, and a slowdown in European milk supply growth," said Dairygold chairperson Pat Clancy. "The Dairygold board continues to monitor markets closely and will review milk price on a monthly basis."

Dairygold's move follows the other Irish processors. Kinisla this week also raised its August price by 0.5c/L, to 39.6c/L including VAT and quality and sustainability bonuses. Lakeland Dairies was the first to confirm an August price: a base of 39.1c/L on 3.6% butterfat and 3.3% protein, including VAT, in the Republic of Ireland, and 31.4p/L in Northern Ireland, both inclusive of its Sustainability Incentive Payment.

The half-cent moves are small but point in one direction: after a summer in which milk supply growth in the main exporting regions weighed on returns, processors are reading a slightly tighter supply-demand balance into their September announcements. Kathleen O'Sullivan reported the prices for Agriland.

Source: Agriland