Dairygold has increased its quoted milk price for August supplies by 0.5c/L, taking the payment to 39c/L for milk supplied by its farmers in Ireland.
The August quoted price is based on standard constituents of 3.3% protein and 3.6% butterfat. The figure includes sustainability and quality payments, as well as VAT.
According to Dairygold, the quoted price translates into an average farm gate milk price of 46.7c/L for August when calculated using the average milk solids achieved by its suppliers.
Higher Price Reflects Improving Dairy Market Conditions
Dairygold said the increase reflects improving sentiment across dairy markets in recent weeks. The cooperative highlighted stronger returns from protein and cheese products, along with slower growth in European milk production.
The board will continue monitoring market developments and review its milk price on a monthly basis.
Dairygold chairperson Pat Clancy said the cooperative has seen continued improvement in dairy market sentiment, particularly because of protein and cheese returns and a slowdown in European milk supply growth.
The movement in Dairygold’s August price comes as Irish dairy processors continue to adjust payments in response to international dairy market conditions, milk supply trends and returns across key dairy commodities.
Dairygold’s EU Standard Price
When calculated using EU standard milk constituents of 3.4% protein and 4.2% butterfat, Dairygold’s August quoted price rises to 42.8c/L, including VAT.
The difference between the standard-constituent price and the average farm gate price demonstrates the effect that milk solids and individual supplier performance can have on actual returns received by farmers.
Other Irish Processors Also Increase Prices
Dairygold’s announcement follows August milk price decisions from other processors.
Kinisla increased its August milk price by 0.5c/L, bringing its payment to 39.6c/L, including VAT as well as quality and sustainability bonuses.
Lakeland Dairies was the first processor to confirm its August milk price. In the Republic of Ireland, the processor announced a base milk price of 39.1c/L, based on standard constituents of 3.6% butterfat and 3.3% protein, including VAT.
In Northern Ireland, Lakeland Dairies will pay a base price of 31.4p/L for August milk supplies. This payment also includes the Sustainability Incentive Payment.
| Processor | August Price | Basis / Notes |
|---|---|---|
| Dairygold | 39.0c/L | 3.3% protein, 3.6% butterfat; includes VAT, sustainability and quality payments |
| Dairygold – EU standard | 42.8c/L | 3.4% protein, 4.2% butterfat; includes VAT |
| Kinisla | 39.6c/L | Includes VAT, quality and sustainability bonuses |
| Lakeland Dairies – Republic of Ireland | 39.1c/L | 3.6% butterfat, 3.3% protein; includes VAT |
| Lakeland Dairies – Northern Ireland | 31.4p/L | Includes Sustainability Incentive Payment |
Market Outlook
The latest announcements indicate that Irish milk prices are responding to improving dairy market conditions, particularly stronger returns from cheese and protein products. At the same time, slower growth in European milk supply is providing additional support to market sentiment.
However, milk prices remain closely linked to global dairy commodity markets and processor returns. Dairygold’s decision to conduct monthly reviews means further changes could follow as market conditions develop.
