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Saturday 23 February 2019

Glanbia and Lakeland hold milk price but warn of 'volatile' and 'uncertain' market

Glanbia will pay its Member milk suppliers 32 cent per litre (cpl) including VAT for December manufacturing milk supplies Picture Credit:FRank Mc Grath
Glanbia will pay its Member milk suppliers 32 cent per litre (cpl) including VAT for December manufacturing milk supplies Picture Credit:FRank Mc Grath
Ciaran Moran

Ciaran Moran

Glanbia and Lakeland Daries have held their milk price for December supplies while also issuing warnings to suppliers about pressures on the global dairy market.

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

This is unchanged from the November price. Glanbia Ireland (GI) has maintained its base milk price for December at 30 cpl including VAT, for manufacturing milk at 3.6% fat and 3.3% protein.

In addition, Glanbia Co-op will make a support payment to Members of 2 cpl including VAT.

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

Glanbia Chairman Martin Keane said: “The recent sale of Skim Milk Powder out of intervention is welcome as it has almost eliminated the stock overhang and improves market sentiment.

"However, Brexit and global trade tensions continue to create some uncertainly around market direction”.

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Meanwhile, Lakeland Dairies has held its milk price and will pay 32.06 cent per litre, inclusive of VAT and lactose bonus, for December milk supplies. This is the same as the price paid for November milk supplies.

Lakeland Dairies will also pay an extra 5 cents per litre Voluntary December Bonus to qualifying suppliers, based on peak to trough supply ratios.

Year to date, milk supplies have remained strong and were up by 17pc in December compared to the same time a year ago.

While global markets continue to be volatile, the ongoing EU sale of stocks from intervention provides a reasonable level of stability at the start of the year.

However butter prices declined significantly in recent months.

Lakeland Dairies will continue to pay the highest possible milk price in line with market conditions.

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