Milk price rises to 31c/l despite 'nervous' market
Dairy farmers received a welcome spring boost yesterday when Glanbia Ingredients Ireland (GII), Kerry Group and Lakeland Dairies all increased their January milk price.
Kerry Group lifted its milk price by 2c/l to a base of 31c/l. Glanbia are the same base price following its lift of 1c/l, while Lakelands also increased its base price by 1c/l to 31.28c/l. All prices are VAT inclusive.
Although Glanbia chairman Henry Corbally cautioned that there remained significant uncertainty in the global dairy market outlook, he said the company would continue to monitor markets on a monthly basis.
Reacting to the price lift, Gerald Quain of ICMSA said the move was a "recognition of reality". However, he insisted that further increases were needed to bring the Irish farmer milk price into line with the market.
Both the ICMSA and IFA had insisted there was room for price hikes in January on the back of the lift in Ornua's PPI and last week's stronger GDT.
The PPI increased by 1.6 to 105.4 points, which equates to 31.4c/l including VAT. Meanwhile, Fonterra's GDT was up 1.3pc.
They also pointed out that milk production across northern Europe has been down 5pc to 12pc through the back end of 2016, while prices of 32-33c/l were being paid by Europe's leading processors.
Quain said the ICMSA was looking for a price rise of at least 1c/l across the sector. Following yesterday's increases, the focus will now shift to other major processors such as Dairygold and Aurivo.