Glanbia holds milk price but warns of market risks
Glanbia will pay its Member milk suppliers 32 cent per litre (cpl) including VAT for September manufacturing milk supplies at 3.6pc butterfat and 3.3pc protein.
This is unchanged from the August price paid to Members.
Glanbia Chairman Martin Keane said in a year that has been extremely challenging from a weather perspective, September conditions were ideal for milk production.
"Our milk supply for the month was very strong compared to the same month last year.
Favourable weather and supplementary feeding has also boosted milk constituents, resulting in an actual average payment for milk this month of 38.35 cent per litre.”
“However, this surge in milk supply has coincided with a very strong start to the New Zealand milk production season, with a cumulative 15pc drop in the GDT price index since June resulting in reduced forecast milk prices.”
“It should also be noted that there has been a rapid decline in European butter markets, with Dutch Dairy Board reported prices down from €6,100 per tonne in June to €4,700 per tonne this week.”
“The Board will continue to monitor developments closely on a monthly basis,” he said.