Glanbia cuts milk price due to 'weaker' dairy market
Glanbia will pay its Member milk suppliers 29.5c/L including VAT for July manufacturing milk supplies.
Glanbia Ireland (GI) will pay a base milk price for July of 29 cpl including VAT, for manufacturing milk at 3.6% fat and 3.3% protein. This is a reduction of 1 cpl from the June base price.
The Board of Glanbia Co-op has decided to continue to make a support payment to Members of 0.5 cpl including VAT for July milk supplies.
Glanbia Chairman Martin Keane said the milk price for July has been adjusted due to weaker dairy market returns, particularly for butter.
"While milk production in key regions such as the US and the EU is at lower levels than last year, demand for some dairy products is subdued in a number of markets. The Board will continue to monitor developments on a monthly basis. Suppliers should note that current milk prices do not fully reflect the weaker dairy market.”
Meanwhile the price paid to Irish farmers for June milk was over two cents per litre behind the EU average according to Gerald Quain, Chairperson of ICMSA Dairy Committee.
He said that this continues the trend set over the last year where the gap has remained constant at two cents per litre resulting in a standard Irish farmer producing 300,000 litres annually receiving €6000 less than the EU average.
Mr Quain noted that Friesland Campina, a significant exporter of dairy products, paid approximately four cents per litre more than Irish processors for June milk and he called for Co-op boards meeting to set their July milk price need to recognise their position in the EU milk league and set milk price accordingly.
“While the Ornua PPI index for July has declined somewhat, the market fundamentals remain strong. Global milk supplies for the first five months of the year are down 0.3%, while milk production is also down in Germany, France and the Netherlands, three key milk producing countries in the EU.
"From a supply perspective, the market’s in a positive position at the present time, while on the demand side, there are issues in relation to Brexit and other trade disputes that are causing problems”, said Mr Quain.
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