Glanbia launches new fixed milk price scheme

Glanbia Ireland has launched a new two-year Fixed Milk Price Scheme (Phase 13).

Under the new scheme the processor is offering a milk price of 31.5c/L including VAT. The scheme will run from February 2019 to January 2021 inclusive, according to Glanbia.

Milk constituents delivered above or below the standard constituents of 3.6% butterfat and 3.3% protein will be paid for on the basis of a 31.5c/L milk price.

Sean Molloy, chief agri-business growth officer with Glanbia Ireland, said: “Glanbia Ireland has a long track record of providing our milk suppliers with the option of taking a fixed milk price in order to protect their businesses from dairy market volatility.

We are pleased to be in a position to offer our latest scheme, Phase 13, offering a fixed price of 31.5c/L over the next two years, particularly in the context of the uncertainty around Brexit.

Meanwhile, Glanbia yesterday revealed its milk price for January supplies.

The processor said that it will pay its member milk suppliers 32c/L including VAT for January manufacturing milk supplies at 3.6% butterfat and 3.3% protein.

Glanbia Ireland (GI) has maintained its base milk price for January at 30c/L including VAT, for manufacturing milk at 3.6% fat and 3.3% protein.

In addition, Glanbia Ireland will make an interim market payment of 1c/L (including VAT) on all January milk supplies (excluding Fixed Milk Schemes paying above 31c/L). Meanwhile, Glanbia Co-op will make a support payment to members of 1c/L including VAT.

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

Glanbia chairman Martin Keane said: “Glanbia Ireland is holding its base price at 30c/L and paying a 1c/L interim market payment as we await developments.

“Lower supply from key EU regions and a positive GDT has helped market sentiment, but Brexit and global trade tensions continue to create uncertainty around market direction.”