Glanbia and Lakeland announce May milk price as farm leaders call for 2c/l hike
Glanbia will pay its milk suppliers 32 c/L (cpl) including VAT for May manufacturing milk supplies.
Glanbia Ingredients Ireland (GII) has increased its base price for May by 1 cent per litre (cpl) to 32c/L including VAT for manufacturing milk at 3.6% fat and 3.3% protein.
Glanbia Chairman Henry Corbally said that the increase reflected the improved returns from some products, particularly butter, but he cautioned that the supply/demand balance was uneven across the product portfolio.
Meanwhile, Lakeland Dairies has increased its base price for May milk by 1 cent per litre to 32 c/L including VAT.
A rise in the dairy prices on the Ornua index and the Global Dairy Trade auction has given a boost to farm organisations' campaign for a significant lift in milk returns.
The boards of both Lakelands and Glanbia are due to meet and announce their May milk prices today, with other processors due to follow later in the week.
IFA and ICMSA are seeking a 2c/l lift in prices, and have called for a base of at least 33c/l, including VAT.
Processors have resisted supplier pressure for an immediate jump to 33c/l, pointing out that while the market for milk fats such as butter was extremely strong, demand for proteins such as skim milk powder (SMP) remained depressed.