Glanbia milk price decision: 'Market returns continue to lag our farm gate milk price'
Glanbia Ireland will pay its milk suppliers 35 cent per litre (cpl) including VAT for January manufacturing milk supplies at 3.6pc butterfat and 3.3pc protein.
This price is unchanged from the December price.
Glanbia Ireland Chairman Henry Corbally said: “While there have been some welcome improvements in market sentiment in recent weeks, current market returns continue to significantly lag our farm gate milk price.
"The Board will continue to monitor market developments on a monthly basis”.
Global dairy prices have extended their strong start to the year, with analysts saying buyers were worried that unfavourable weather would hamper production in New Zealand, the world's top milk exporter.
The Global Dairy Trade (GDT) Price Index rose 5.9 percent, the largest increase since November 2016, with an average selling price of $3,553 per tonne in an auction held early on Wednesday local time, said auction platform GDT Events.
Prices have now risen at all three auctions held in 2018, after falling in five of the final six sales of 2017.
"Falling milk production in NZ – and revisions to offer volumes – continue to support prices on GDT," Amy Castleton, analyst at AgriHQ, said in a report on the auction.