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Co-ops announce price increases for July

Tirlán, Dairygold, Lakeland Dairies and Kerry Dairy Ireland have all announced price increases for July milk supplies.

Kerry Dairy Ireland announced earlier this week that its July milk price is 44c/L inclusive of VAT at 3.3 per cent protein and 3.6 per cent butterfat. This is up from 42.5c/L for June supplies. Based on EU standard constituents of 3.4 per cent protein and 4.2 per cent butterfat, that price is 48.23c/L, up from 46.6c/L for June.
A statement from Kerry Dairy Ireland said: “Butter prices continue to bolster dairy market returns. The demand landscape remains largely stable, with robust demand outside of China, while demand from China continues to be weak.”
Lakeland Dairies announced a base price of 45.25c/L at 3.3 per cent protein and 3.6 per cent butterfat for July milk in the Republic of Ireland (RoI). This is inclusive of the 0.5c/L Sustainability Incentive Payment. The base price increased by 1.75c on June milk supplies.
In Northern Ireland (NI), a base price of 37.3p/L will be paid for milk supplied in July which is inclusive of the 0.5p/l Sustainability Incentive Payment, and represents a 1.5p/L increase on the previous month.
A Lakeland spokesperson said the co-op will continue to monitor the markets and will endeavour to support farmers as best it can. The spokesperson added: “If they have not done so already, we are encouraging farmers to carry out a fodder survey to get an accurate picture of feed stocks on their farm. If deficits have been identified, we are strongly advising farmers to take action. Our member relations as well as agri-business advisors are ready to help and support farmers where necessary.”
Dairygold has increased its milk price by 2c/L for July to 44.5c/L, VAT included, based on standard constituents at 3.3 per cent protein and 3.6 per cent butterfat. This equates to an average farm gate milk price of 49.8c/L, based on the average July 2024 milk solids, achieved by Dairygold milk suppliers. Based on EU standard constituents of 3.4 per cent protein and 4.2 per cent butterfat, the price is 48.5c/L, inclusive of VAT.
A company spokesperson commented that: “Dairy market returns have improved, primarily driven by further increases in Butter prices. The Dairygold board remains focused on encouraging milk suppliers to maximise their milk production for the remainder of the year.”
Tirlan has announced that it will pay a total of 44.83c/L, including VAT, for July milk at 3.6 per cent butterfat and 3.3 per cent protein. This is an increase of 1.75c/L on the payment for June. It also includes the Sustainability Action Payment of 0.5c/L, including VAT, to all qualifying suppliers.
Tirlán chair, John Murphy said: “Butter and cream prices recorded a notable increase in recent weeks due to tight supply. Milk constituent levels have struggled in Europe due to weather and feed issues, which has reduced butterfat availability.
“Global milk supply is forecast to increase in the coming months but overall supply is likely to be similar to the previous year, or only marginally higher. The main driver of market dynamics in the coming months is likely to be the seasonal ramp-up of production in the southern hemisphere. The Board will continue to monitor the dairy market on a monthly basis.”
He said he looked forward to meeting as many Tirlán milk suppliers as possible at open days to be held at the Ballyragget milk processing plant on Tuesday, September 24 and Wednesday, September 25. Details on registration and booking will issue shortly.