Glanbia cuts November base milk price, co-op pays 'support measure'
Glanbia has announced it is holding its price at 32c/L for November milk, by introducing a 'support payment' after cutting its base price.
Glanbia will pay its member milk suppliers 32c/L including VAT for November manufacturing milk supplies at 3.6pc butterfat and 3.3pc protein. This is unchanged from the October price.
Glanbia Ireland reduced its base milk price for November to 30c/L 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 2c/L 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, they have said.
“As highlighted in recent months, there has been a significant reduction in dairy market returns, particularly for butterfat, which we must reflect in the base milk price.
“Brexit developments and international trade uncertainty, offset to some extent by reduced intervention stocks and potentially lower milk volumes from key EU regions, are among the factors that will influence dairy markets in the coming months.
“The Board will continue to monitor developments on a monthly basis,” Glanbia Chairman Martin Keane has said.
Global dairy prices rose for the first time in six months at a fortnightly auction held on the first week of December as lower volumes of key products were offered at the sale.
The GDT Price Index climbed 2.2pc, the first rise since May, to an average selling price of $2,819 per tonne.
The Chairperson of ICMSA’s Dairy Committee said that the reaction of their suppliers to Glanbia’s 2c/L cut in Base Milk Price for November would be anger and confusion.
Gerald Quain said that the announcement was completely unexpected and all market data indicated that particularly powder markets had gathered some momentum in the last few weeks as key indicators signalled that global milk supplies were easing back and analysts began to get a clearer picture of where the supply-demand dynamic was likely to settle.
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