Glanbia holds February base milk price as co-op cuts support payment
Glanbia will pay its milk suppliers 31.5c/L (including VAT) for February manufacturing milk supplies at 3.6pc butterfat and 3.3pc protein, down from the 32c/L it paid for January milk.
According to Glanbia Ireland, it says that in line with current market returns, it maintains its base milk price for February at 30c/L including VAT, for manufacturing milk at 3.6pc fat and 3.3pc protein.
In addition, Glanbia Ireland will make an interim market payment of 1c/L (including VAT) on all February milk supplies (excluding Fixed Milk Price Schemes paying above 31c/L).
For January supplies, Glanbia paid a base price of 30c/L, but it also paid an interim market payment of 1c/L while the co-op boosted the price to 32c/L with a 1c/L support payment to members.
That support payment has been cut to 0.5c/L for February supplies.
Glanbia Chairman Martin Keane said Brexit uncertainty has led to short term changes in purchasing patterns. "Protein prices have improved, but market returns have not recovered from the reduction in butter prices over recent months. While the recent series of GDT auction results is positive, it is from a lower base and remains below the current Glanbia Ireland price. With the market based milk price currently at approximately 30c/L, the Board will continue to monitor developments on a monthly basis”.
Glanbia Ireland reduced its base price for November milk supplies by 2c/L to 30c/L (including VAT), but a support payment of 2c/L from Glanbia Co-op means that returns to suppliers remain unchanged at 32c/L.
However, the ICMSA slated the move and questioned Glanbia Ireland's motivation for cutting its base price.