Glanbia slashes its July milk price – blames weak markets
Glanbia has said it will pay its member suppliers 26.5c/L including VAT for July milk.
This price is inclusive of 1.5c/L Glanbia Co-Operative Society support payment to its members.
It’s the second month in a row that Glanbia has cut its milk price, after ‘holding’ its price for March, April and May, before cutting to 28c/L for June milk.
A statement from Glanbia blamed ongoing weakness in global dairy markets as the reason Glanbia Ingredients Ireland (GII) has reduced the manufacturing milk price for July by 1c/L to 25c/L including VAT.
“Conscious of the serious impact of the current weak market price on the profitability of farmer suppliers, the Board of Glanbia Co-operative Society has decided to pay members who have signed a Milk Supply Agreement a bonus of 1.5 cpl (including VAT) for July manufacturing and liquid milk supplies.”
It comes after Lakeland Dairies cut its July milk price by 1c/L to 27c/L (VAT inc).
It follows a 0.75c/L cut for its June milk price. It is the first dairy processor to announce a July price for milk and it comes after most processors cut their June milk price.
Last month Aurivo cut its June milk price to 28c/L (including VAT) for June milk, down 2c/L on the previous month.
“We have no option but to reflect current market conditions in the price that we pay our farmers,” said Eoghan Sweeney, the co-op’s general manager for dairy.
The Carbery Group confirmed a milk price for June of approximately 28.9c/L (including VAT and an SCC bonus of 0.5c/L).
A Carbery spokesperson said the board sets its milk price on a monthly basis, based on its ability to support the milk price.
“And this will continue to be the case over the next quarter.”
Dairygold paid 27c/L for June milk, down 1c/L on the previous month. The co-op also confirmed that milk supplies were currently running 16% higher than for the same period of 2014/15.
Kerry held its June milk price at 28c/L (inc VAT).