Farm Ireland
Independent.ie

Wednesday 17 January 2018

Glanbia's milk price reaches a record high

Glanbia has announced a new record-breaking milk price for August supplies
Glanbia has announced a new record-breaking milk price for August supplies
Darragh McCullough

Darragh McCullough

Glanbia Ingredients Ireland has announced a new record-breaking milk price of 39c/l for August supplies.

The VAT-inclusive price is 1c/l higher than the July price and reflects the ongoing buoyancy of international dairy markets.

The Irish Dairy Board (IDB) is also expected to announce a new record high purchasing price index today, with all industry observers expecting an increase similar to the 3pc increase in July.

The index is currently at an all-time high of 130.3.

The strength of dairy markets has led to demands from both the IFA and ICMSA for a 2c/l price increase to a VAT inclusive price of 40c/l.

Firmed

"Supplies are still tight and stocks are limited and committed.

"Prices have even firmed within the EU, with average market prices for the main commodity combinations returning 45-47c/l before processing costs," said IFA dairy chairman, Kevin Kiersey.

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"Friesland Campina is now paying the equivalent of 42.7c/l, which is close to a 10c/kg increase on last year.

"An equivalent increase over the same period in Ireland would give a milk price of close to 41c/l for September 2013," he said.

"Co-op boards will be meeting in the coming days to decide on their August milk price and consider the autumn prospects.

"I urge farmer board members to inform themselves on the current market returns, and ensure that a plan is in place to pass back the price increase to farmers promptly and to maintain those improved prices over the winter period at the very least," he concluded.

Buoyant

The ICMSA's deputy president, Pat McCormack, criticised what he described as the "late and low" price adjustments being made by the processors and co-ops.

"All the leading indicators repeatedly point towards higher milk prices and the processor must increase prices to reflect the current buoyant market circumstances when they meet to fix their prices in the coming days," he said.

"Fonterra's Global Dairy Trade auction average weighted price on all products is now 54pc higher than this time last year.

"Suspicion is hardening fast amongst farmers that processors and co-ops are choosing a policy of late and low price rises that lag noticeably behind the returns they are receiving from their customers.

"Farmers are just not seeing the full benefits of buoyant dairy markets and they will struggle next winter if the returns are not passed on fully," concluded Mr McCormack.

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