First processor announces milk price for March supplies
Glanbia is the first processor to announce its milk price for March supplies; deciding to hold it at 31c/L including VAT (for manufacturing milk supplies).
Glanbia Ingredients Ireland (GII) has held its base price for March at 31c/L including VAT for manufacturing milk at 3.6% fat and 3.3% protein.
This is the second consecutive month the processor has decided to hold its milk price at 31c/L, with the last milk price increase of 1c/L coming in January.
Glanbia Chairman Henry Corbally said that the board will continue to monitor dairy markets on a monthly basis.
“Milk supplies from the USA remain strong, while European milk volumes are recovering faster than expected.
There continues to be a number of geopolitical uncertainties that could impact on the global dairy market.
“Supply and demand remain delicately balanced based on current global supply indications,” he said.
Calls made to increase milk prices further
Recently, the IFA’s National Dairy Committee Chairman, Sean O’Leary, called on co-ops to increase March milk prices to at least 33c/L.
Various co-ops are set to meet this week to decide on milk prices for March supplies.
While there are concerns over skimmed milk powder (SMP) intervention stocks; the EU Commissioner for Agriculture, Phil Hogan, has made it clear he is determined not to sell, except ‘at the right price’, O’Leary said.
There were clear indications that 2017 would see only very modest volume increases and that dairy prices would remain mostly stable at relatively strong levels, he added.
O’Leary believes this must strengthen co-ops’ resolve to up prices further and deliver at least 33c/L before peak.
This would allow Irish milk producers to re-build their balance sheets as well as to clear out merchant credit and other short-term debt, he said.