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Monday 10 December 2018

Glanbia and Lakeland announce milk prices for July supplies

Glanbia Ireland has a 2.4 billion litre milk pool from 4,800 suppliers
Glanbia Ireland has a 2.4 billion litre milk pool from 4,800 suppliers
Ciaran Moran

Ciaran Moran

Glanbia will pay its Member milk suppliers 32 cent per litre (cpl) including VAT for July manufacturing milk supplies at 3.6pc butterfat and 3.3pc protein.

Glanbia Ireland (GI) has maintained its base milk price for July at 31 cpl including VAT, for manufacturing milk at 3.6pc fat and 3.3pc protein.

In addition, Glanbia Co-op will make a support payment to Members of 1 cpl including VAT, for July manufacturing milk at 3.6pc fat and 3.3pc protein.

The Glanbia Ireland base price and the Co-op support payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.

Glanbia Chairman Martin Keane said: “at a time of significant challenge on our farms, milk price stability is welcome. However, there continues to be volatility in market returns for some products. The Board will continue to monitor developments on a monthly basis”.

Lakeland Dairies

Meanwhile, Lakeland Dairies has increased the base milk price by 1 cent per litre to 32.78 cents per litre including VAT for July milk supplies.

The increase for July milk recognises the difficult conditions being experienced by dairy farmers as a result of the extended period of very dry weather during the Summer.

To further assist dairy farmers, Lakeland has also introduced a €20 per tonne discount on every tonne of fertiliser bought by milk suppliers and shareholders, effective from 1st August to the end of the fertiliser spread season.

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Lakeland Dairies said that it will continue to pay the highest possible milk price in line with market conditions which remain variable.

Last week Kerry Group announced a milk price rise of 1c/L (VAT inclusive) to its suppliers for July milk.

It comes the day after Kerry announced half year figures that showed revenue growth of 1.4pc year on year for the first half.

Kerry Group

Kerry will pay milk suppliers 32c/L (VAT inclusive) for July milk it said today.

Kerry Group CEO Edmond Scanlon said he is considering a new support payment scheme for the company's milk suppliers, with many farmers suffering the consequences of this year's extreme weather.

Mr Scanlon told reporters in Dublin yesterday that such a scheme was "something we're going to have to look at".

"There's a package of thing we're looking at in terms of different types of support. We have to see how the next couple of months trade out, how the weather goes... but certainly we won't be found wanting as an organisation to help out our farmers." Around 14pc of the company is owned by the Kerry co-op.

He said he was more optimistic about the prospect of a milk price increase than he was in February. "Generally speaking we'd be fairly optimistic that the milk price would hold up. At the end of the day Kerry Group doesn't set the milk price, it's a market-driven event but we are doing everything we possibly can to drive the volatility out of it."

IFA National Dairy Committee Chairman Tom Phelan said the move by Kerry Co-Op to increase the price for July recognises that there is scope for processors to lift their prices.

He encouraged other co-ops to follow this example and give dairy farmers’ cashflow a much-needed boost.

“At a time when farmers continue to struggle with the weather-related events and fodder availability, co-op boards need to redouble their effort to reflect the European market”.

Tom Phelan said while co-ops have brought forward different measures to support dairy farmers, there is no question that paying the highest milk price that market returns allow is always the best ‘support’ for farmers.

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