Glanbia Ireland has decided to hold its milk price and will pay its suppliers 35c/L including VAT for January manufacturing milk supplies at 3.6% butterfat and 3.3% protein.
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.”
Other co-ops are set to announce their milk prices in the coming days.
Glanbia Co-op Trading Bonus
Corbally reminded milk suppliers of the 2018 Trading Bonus Scheme recently announced by Glanbia Co-op. The scheme will reward farmer members of the co-op for purchases made from Glanbia Ireland.
For milk supplier members of the co-op, the new 2018 Trading Bonus is potentially worth up to 0.75c/L on all milk delivered in 2018, Glanbia has said.
All 2018 purchases made from Glanbia Ireland – feed, fertilizer, veterinary medicines, dairy hygiene products and farm hardware etc – are included in the calculation.
At the end of 2018, the total spend will be divided by the total litres of milk delivered to generate a cent per litre input spend.
Image source: Glanbia
The Trading Bonus Scheme is funded from Glanbia Co-op’s 60% share of the dividend paid by Glanbia Ireland to its shareholders in January 2018.
Corbally also thanked the farmers that attended the recent series of Glanbia information meetings, which numbered nearly 1,000.
Ornua PPI holds for January
Yesterday it was revealed that the Ornua Purchase Price Index (PPI) for January remains unchanged at 111.3. It reflects reduced returns for butter and skimmed milk powder (SMP), offset by less lower-priced spot purchases in the month compared to December.
This equates to 33.6c/L including VAT, based on Ornua’s product purchase mix and assumed costs of 6.5c/L.
This follows on from last month’s drop in index for December supplies; the index for the last month of 2017 dropped from 115.0 to 111.3, bringing to an end six consecutive monthly increases in 2017.