Arrabawn Co-op has cut its May milk price by 1c/L however, a spokesperson for the co-op said that it will use a market support of 1c/L to hold the milk price.
With this 1c/L support, the May milk base price for Arrabawn supplies stands at 23.68c/L, including VAT.
Arrabawn is the latest co-op to set its May milk price and follows Kerry, Glanbia and Lakeland Dairies who set their prices earlier this week.
Kerry co-op cut its milk price for May supplies of milk by 1c/L, bringing the milk price to 22.5c/L, while Lakeland Dairies also cut its milk price by 0.5c/L for May supplies, bringing the price for the month to 24c/L including VAT.
A spokesperson for the co-op told Agriland that this price includes an Ornua bonus of 1c/L following the sale by Ornua of its majority stake in DPI Foods in the US.
For April supplies, Lakeland Dairies milk price was 24.5c/L and the co-op had cut its milk price for March by 1c/L.
Meanwhile, Glanbia also cut its milk price for May supplies this week.
Including these bonuses, member suppliers will receive 23c/L for May milk, including VAT, for manufacturing milk at 3.6% fat and 3.3% protein.
This includes the distribution of the remaining balance of the Ornua ‘additional cash bonus’. A 1c/L Ornua bonus was distributed to all suppliers in March.
Henry Corbally, Glanbia Chairman, said that it appreciates the income challenge caused by the extreme weakness in the global dairy market.
We are doing all we can to support our farmer suppliers, through both GII and the Society.
“We have recently launched our €55m Glanbia Advance Payment (GAP) Scheme to add to our range of industry leading Volatility Tools, such as Fixed Milk Price Schemes and MilkFlex Loan Fund.”
In addition to the milk price of 23c/L, including VAT, for May, he said that the optional GAP scheme will offer up to 2c/L of interest-free cashflow support on May to December 2016 milk volumes to participating members.