Glanbia cuts milk price by 3c/L amid warnings of 'market oversupply'
Glanbia Ireland was first out of the blocks to cut the milk price for February, amid warnings of an oversupply in the marketplace.
The Kilkenny-based processor moved to cut its price by 3c/l from January levels. It will pay milk suppliers 32c/l including VAT for February at 3.6pc butterfat and 3.3pc protein.
However, it will also include a ‘special support payment’ of 1c/l to reflect “the tough Spring” and “challenging” conditions on farms.
It also follows the Global Dairy Trade prices slipped for the second time in a row.
Ahead of the board meeting, Glanbia Ireland’s Jim Bergin warned at the launch of the revamped Wexford cheese plant that there was an “oversupply situation”.
“Today, markets are trading considerably below the milk price, so therefore we will have to address that,” he added.
“Farmers should stress test their budgets at 28c/l. There has been a little bit of an improvement at the lower end but the last two GDPs have gone backwards.”
Glanbia Ireland chair Henry Corbally said they had signalled to farmers that returns were below farm gate prices and this move reflected “that reality”. He said the support payment would be made and it would continue to monitor developments on a monthly basis.