Farm Ireland
Independent.ie

Monday 21 May 2018

Glanbia boosts base milk price for December, but cuts off co-op support payment

Image: Roger Jones
Image: Roger Jones
Ciaran Moran

Ciaran Moran

Glanbia will pay its suppliers 30c/L including VAT for December manufacturing milk supplies.

Glanbia Ingredients Ireland (GII) has increased its base price for December by 1c/L to 30c/L including VAT for manufacturing milk at 3.6pc fat and 3.3pc protein.

However, it says in light of this decision, there will be no Glanbia Co-operative Society support payment to Members this month.

Glanbia Chairman Henry Corbally said that the strong recovery in Glanbia’s milk price in the past six months has resulted in a positive conclusion to a very challenging year for the dairy sector.

This week, Lakeland Dairies announced that it had increased its milk price by 1c/L to 30.28 cents per litre including VAT for December milk.

It comes as farm organisations are pushing for a further lift in milk prices for December supplies despite a 4pc drop in the first Global Dairy Trade (GDT) auction of 2017.

The ICMSA and IFA insisted that supplies of dairy commodities on world markets remained tight and there was scope for further price increases to milk suppliers as a consequence.

A number of dairy processors are due to meet this week to set their December milk price, with Kerry Group, Lakeland Dairies and Glanbia usually among the first to make a decision.

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Base prices have increased continually since last summer and now range from around 29c/l to 31c/l.

Gerald Quain of ICMSA said the EU and world price for dairy products remained in a fundamentally strong position despite two consecutive falls in GDT auctions.

He described these reductions as 'blips' which did not change the fundamental trend of supply falling behind demand across the globe.

And he warned that milk suppliers would be "furious" if processors used the GDT falls as an excuse to cut milk prices. "ICMSA expects the underlying upward trend in milk prices to continue for the first six months of 2017," Mr Quain insisted.

Online Editors