Glanbia and Lakeland decisions ‘must signal end of milk price slide’
Both Glanbia and Lakeland revealed their prices for May milk today, Thursday, June 11, with both processors holding their prices from last month.
Responding to this, the Irish Farmers’ Association (IFA) has said that today’s decisions by the two processors “must be the signal that stops the slide and marks the beginning of improved returns for farmers”.
Tom Phelan, the association’s dairy chairperson, said that the decisions to hold prices “was badly needed to minimise damage to farmers’ confidence as the drought was starting to bite”.
Other co-ops must at the very least hold their May milk price. However, farmers would legitimately expect better prices from now on, and will need them to support their rapidly eroding cash flow.
“European butter and SMP [skim milk powder] spot quotes have been rising steadily for seven weeks now by the equivalent of 5.6c/L. The most recent EU Milk Market Observatory average market quotes for the same products and over the same period have risen by the equivalent of 3c/L,” the IFA dairy chairperson highlighted.
Phelan concluded: “Co-ops must prepare to increase farmgate prices before the end of peak [production].”
Following a meeting of its board this afternoon, Glanbia revealed that it will hold its base milk price from April.
Glanbia will pay co-op members 28.62c/L including VAT for May milk supplies at 3.6% butterfat and 3.3% protein. This includes an unchanged base price of 28c/L.
Glanbia Ireland (GI) will make a payment of 0.2c/L including VAT on all May milk volumes to reflect weather-related issues on farms.
Farmer members will also receive a 0.42c/L including VAT payment from Glanbia Co-op on all milk supplied this month as their ‘Share of GI Profit’.
Earlier today, Lakeland became the first milk processor to reveal its milk price for May supplies.
In the Republic of Ireland, a base price of 29c/L including VAT will be paid for milk supplied in May. The base price has been held from April.
In Northern Ireland, a base price of 23p/L will be paid for May milk. Again, the price has been held from April.