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Friday 14 December 2018

Glanbia increases base milk price for June by 2 cents

Glanbia Ireland has a 2.4 billion litre milk pool from 4,800 suppliers
Glanbia Ireland has a 2.4 billion litre milk pool from 4,800 suppliers
Ciaran Moran

Ciaran Moran

Glanbia has announced it will pay its Member milk suppliers 32 cent per litre (cpl) including VAT for June manufacturing milk supplies at 3.6% butterfat and 3.3% protein.

Glanbia Ireland (GI) will increase its base milk price for June by 2 cents to 31 cpl including VAT, for manufacturing milk at 3.6pc fat and 3.3pc protein.

In addition, Glanbia Co-op will make a drought related support payment to Members of 1 cpl including VAT, for June manufacturing milk at 3.6pc fat and 3.3pc protein.

The Glanbia Ireland base price and the Co-op support payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.

Martin Keane, Glanbia Chairman, said: “We are pleased to increase our milk price for the highest milk volume month of the year.

"This reflects increased returns, particularly for butter. However, market balance remains fragile, with the impact of trade wars and consumer resistance to higher retail prices being two issues that need to be monitored very closely in the coming months”.

ICMSA dairy chairperson Ger Quain had said it was time for processors to lift prices in accordance with market developments and the pressure on their farmer-suppliers.

“Dairy markets have increased steadily from their lowest in point in March to a current position where the butter/SMP (skim milk powder) mix is slightly below 35c/l after processing in the spot market,” said Mr Quain.

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Tom Phelan of IFA said that despite the recent easing in the GDT, returns for both SMP and butter would yield an Irish price equivalent of 33.5c/l including VAT, while European spot price levels would equate to 37c/l including VAT.

“EU and global commodity markets have been strengthening, with the EU MMO returns up by just over 5c/l since January — more than half of the reduction seen over lower volumes between September and December 2017. Latest figures suggest a milk price equivalent, including VAT, of 34.63c/l,” Mr Phelan said.

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