Glanbia softens milk price cut with 3c/L weather support payment
In its announcement of its March milk price, Glanbia Ireland has revealed a 2c/L cut for last month’s supplies. It will pay its milk suppliers a base price of 30c/L including VAT at 3.6% butterfat and 3.3% protein.
However, a weather support payment of 3c/L will be given – coming from the co-op – to maintain current payments in light of severe weather conditions.
This follows on from a previous 3c/L cut to the February base price, which dropped from 35c/L to 32c/L including VAT.
However, Glanbia’s February milk payment also included a top-up of 1c/L “to reflect the particularly challenging weather conditions experienced on Glanbia farms”, bringing it back to 33c/L.
Further drop for Ornua PPI
Ornua’s Purchase Price Index (PPI) has dropped further for the month of March, down from February’s index of 105.4.
According to the Irish dairy exporter, March’s figure of 100.4 works out at 29.6c/L, VAT inclusive, based on Ornua’s product purchase mix and assumed costs of 6.5c/L.
This month’s index was adjusted from the slightly revised figures of 105.4 in February, according to an Ornua spokesperson.
This follows a steep decrease in the index last month, where February’s index dropped to 105.4, down from January’s 111.3 figure.