Dairygold’s chief executive Jim Woulfe has forecast an average base price for 2017 of between 31c/l to 33c/l including VAT.

Woulfe also confirmed to a local area meeting that the co-op’s next big investment will be in whey production.

Addressing a meeting of Dairygold suppliers in Cahir, Co Tipperary, this week, Woulfe said renewed confidence in the global markets is now being seen at a domestic level.

Woulfe added that his forecast price is based on constituents of 3.3% protein and 3.6% fat but the society average was and will be significantly higher than that. The average Dairygold supplier received 3.8c/l on top of the base milk price in 2016.

Whey

As result of increased volumes of milk processed post-quota, Dairygold has to contend with more volumes of whey as extra milk was processed into cheese. Volumes are expected to increase further in 2017, which will result in more whey. Outside of its partnership with Danone, whey processing is an area in which Dairygold is perceived to have been behind some of its competitors. However, its whey processing will continue to grow due to its partnership with Norwegian co-op TINE and its Jarlsberg cheese brand.

Planning permission was lodged last week for an upgrade at Dairygold’s Mogeely plant, with commissioning expected in the fourth quarter of 2018.

The facility will be 10,000sq metres with a 3t/hour cheese line, a wheel plastic coating system and 2,800t of storage.

Woulfe said as a result whey processing will be the co-op’s next big investment plan.

“The TINE investment in cheese production at Mogeely will expand the already significant volumes of whey the society produces and puts the focus for the next investment by Dairygold clearly on whey,” he said.

Woulfe did not indicate how much would be required to invest in whey production.