Updated: Glanbia and Lakeland Dairies announce milk price increases

Both Glanbia Ireland and Lakeland Dairies – the first two processors to announce their July milk prices – have announced milk price increases.

A 1c/L increase announced by Glanbia Ireland means that its suppliers will be paid 34c/L including VAT for milk produced during the seventh month of the year.

A price of 34c/L, VAT inclusive, will be paid for July manufacturing milk at 3.6% butterfat and 3.3% protein.

This is the third consecutive monthly increase of 1c/L announced by Glanbia. 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, the Chairman of Glanbia, Henry Corbally, said: “We are pleased to be able to reflect continuing positive dairy market performance, particularly with strong demand for butter and good demand for cheese.

However certain parts of the dairy market continue to be challenging, especially powders, and the Glanbia Ireland board will continue to monitor market developments on a monthly basis.

Meanwhile, Lakeland Dairies has also announced an increase of 1c/L for July supplies – bringing its base price to 34c/L including VAT.

Similar to Glanbia Ireland, this is the third consecutive monthly increase announced by Lakeland Dairies; it also increased its May and June milk price by 1c/L.

Other processors will be announcing their milk prices for July supplies in the coming days and weeks.

Scope to add ‘another cent onto the July milk price’

Earlier this week, the Irish Farmers’ Association’s (IFA’s) Dairy Chairman, Sean O’Leary, said that there was scope for co-ops to put another cent onto the milk price for July supplies.

This follows on from relatively static results for Ornua’s Purchase Price Index (PPI) and a slight decrease at the latest Global Dairy Trade (GDT) auction.

O’Leary said that prices continue to be strong and – taking everything into account – the outlook remains positive at present.