Glanbia announces its September milk price
Glanbia Ireland has announced that it will pay suppliers 35c/L (including VAT) for September milk.
It announced today that the 35c/L including VAT is for September manufacturing milk supplies at 3.6pc butterfat and 3.3pc protein. This price is unchanged from the August price.
Glanbia Ireland Chairman Henry Corbally said: “in recent weeks prices for some products have weakened slightly and buyers continue to resist high butter prices in particular. Meanwhile, on the supply side, it is clear that higher milk prices, relatively cheap feed and good weather is driving increased milk production across the EU and the US. The Board will continue to monitor market developments on a monthly basis."
It comes after Ornua announed a 3 point jump in its Purchase Price Index to 114.6 points, or 34.7c/L (inc VAT).
IFA National Dairy Committee Chairman Sean O’Leary Ornua's announcement shows that Irish trading contracts are catching up with the stronger September butterfat and cheese in EU MMO and spot price reports.
Latest EU average returns remained strong to end September at around 41c/l, he said. "After a 5c/l processing cost is deducted, this would suggest a price equivalent of 36c/l + VAT, and as other European dairy farmers were continuing to receive increasing milk prices into October, it was well justified for Irish producers to expect at least 1c/l on September milk."