Processor announces decision to hold September milk price
The first processor to announce its September milk price has decided to hold it at 35c/L including VAT for last month’s supplies.
Glanbia Ireland has become the first processor to reveal its milk price for September. Its price is based on manufacturing milk supplies at 3.6% butterfat and 3.3% protein.
The decision by the processor to hold its September milk price brings to end four consecutive months of announcing 1c/L increases.
Prior to increasing its May milk price, the processor had held its price at 31c/L for three months in a row.
Commenting on the announcement, Glanbia Ireland chairman Henry Corbally said: “In recent weeks prices for some products have weakened slightly and buyers continue to resist high butter prices in particular.
Meanwhile, on the supply side, it is clear that higher milk prices, relatively cheap feed and good weather is driving increased milk production across the EU and the US.
“The board will continue to monitor market developments on a monthly basis,” he concluded.
This decision is sure to disappoint numerous farm organisations and farmers who had been calling for a further milk price increase for the ninth month of the year.
Other processors are expected to meet in the coming days and weeks to decide upon and announce their individual milk prices.
Ornua’s PPI reaches highest level in 3 years
Yesterday, it was revealed that Ornua’s Purchase Price Index (PPI) recorded its highest monthly increase this year – by jumping 3.3 percentage points in September.
By reaching 114.3% for the ninth month of this year, Ornua’s PPI has reached its highest level in three years. Last month’s PPI value surpassed the 111.6% recorded in September 2014.
This announcement by Ornua represents the fifth consecutive monthly increase recorded in 2017.