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April milk prices have been cut by three of the main milk processors collecting over 50% of the Irish milk pool.
On Wednesday, Kerry announced a 2.5c/l cut in April milk price. Earlier in the week, Glanbia announced a 2c/l cut. Late last week, Lakeland Dairies cut April price by 1c/l. Other co-ops are expected to set April prices in coming days.
The April cut represents a €1,200 reduction in the April milk cheque for the average dairy farmer. What has frustrated farmers is that the April cuts have come as global commodity prices have been rising for the last three weeks.
Year-to-date figures will show a cumulative reduction of 4c/l for the first four months of the year, representing a €5,200 cut in milk sales (4c/l cut on 26% of annual supply). This represents a €50/cow drop in output value since the start of the year and, if this price reduction remains for the year, it would represent a €200/cow drop in output value.
Kerry
Kerry Group effectively cut April milk price 2.5c/l on Thursday. The base price for April milk in Kerry will be 28.46c/l excluding VAT. This is a 2c/l cut on its March price of 30.36c/l excluding VAT. Last month, Kerry paid a 1.5c/l top-up on January to March milk. For April, this top-up is reduced to 1c/l (including VAT).
Glanbia
Glanbia dropped 2c/l off the April price by cutting both the base price and the support payment. The board of Glanbia set its April milk price at 27.5c/l excluding VAT for milk supplied at 3.6% butterfat and 3.3% protein. This represents a cut of 1c/l to the base price compared with the previous month. However, Glanbia Co-op will make a support payment to members of 2c/l including VAT for April manufacturing milk. The co-op paid a 3c/l support payment the previous month.
Lakeland
Last Friday, Lakeland Dairies decided to leave its base milk price unchanged, but cut a support payment by 1c/l. It means the milk price paid to farmers is therefore dropping by 1c/l, to 31.57c/l for April supplies (excluding VAT).
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