Glanbia announces 3c/L cut in February milk price

Glanbia Ireland has cut its milk price for February supplies and will pay its milk suppliers 32c/L including VAT for February manufacturing milk supplies at 3.6% butterfat and 3.3% protein.

This is a reduction of 3c/L from the January price.

The Glanbia February milk payment will also include a payment of 1c/L to reflect the particularly challenging weather conditions experienced on Glanbia farms.

Glanbia Ireland chairman Henry Corbally said: “As we have clearly signalled to our farmers in recent months, current market returns are significantly below our farm gate milk price.

“The board has this month reduced our base manufacturing milk price by 3c/L to 32c/L to reflect that reality. However, the board is very conscious of the tough spring being experienced by our farmers.

The Glanbia region bore the brunt of Storm Emma and conditions remain challenging. As a result, the board approved a special support payment of 1c/L which will be paid across all February milk volumes.

“The board will continue to monitor market developments on a monthly basis,” Corbally added.

Fixed milk price schemes

Milk volumes allocated to Glanbia’s Fixed Milk Price Schemes will also benefit from the special support payment – as the scheme prices are currently below the market price, according to Glanbia.

Milk constituents above the reference solids of 3.6% butterfat and 3.3% protein will be paid for on the basis of the differentials applicable to a milk price of 33c/L.

On March 3, Glanbia announced that it would pay 20c/L (including VAT) on milk volumes that were lost due to the impact of Storm Emma (in the event that a farm insurance policy does not cover such losses).

Glanbia group chairman Henry Corbally praised the “magnificent efforts” made by suppliers, hauliers and staff which ensured that the vast majority of available milk was collected in the days immediately after the Status Red Storm event.

Seasonality Bonus

Glanbia Ireland chairman Henry Corbally said that a significant number of Glanbia Ireland suppliers qualified for a Seasonality Bonus of 4.25c/L (including VAT) on all of their February milk supplies.

The Seasonality Bonus of 4.25c/L (including VAT) was paid on all qualifying litres supplied by creamery milk suppliers during the last two weeks of January and for the month of February.

To qualify for the Seasonality Bonus, suppliers must supply a minimum of 3% of their annual supply in the Glanbia accounting month of February and no more than 15% of their annual supply in the Glanbia accounting month of June. Milk lactose levels must be a minimum of 4.35% in order to qualify for the Early Lactation Bonus.

Based on the previous year’s milk supply pattern (3% February, less than 15% peak), qualifying suppliers will be paid the Seasonality Bonus with their February milk payment.

Next January a review of qualifying suppliers will be completed, following from which any newly qualifying suppliers will be identified and will receive a retrospective payment. Payments made to suppliers who did not meet the previous year’s qualifying criteria (max 15% in June and the minimum 3% Feb requirement) will be recovered over the three-month period April to June 2019.