Glanbia has announced its milk price for supplies in October, deciding to increase its offering.

The business has said that it will pay its member milk suppliers 37.6c/L including VAT for October creamery milk supplies.

Glanbia Ireland (GI) will pay a base milk price for October of 37.18c/L including VAT for creamery milk at 3.6% fat and 3.3% protein.

This is an increase of 1c/L including VAT from the September base price.

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.

The GI base price and co-op share of GI profit payment will be adjusted to reflect the actual constituents of milk delivered by suppliers, the business said.

The Glanbia milk price for October creamery milk based on LTO (European standard) constituents of 4.2% butterfat and 3.4% protein is 40.88c/L.

GI Chairman John Murphy said: “Dairy markets have strengthened further, driven by weaker global milk supply and buyers moving to secure product in the face of supply chain challenges.

“There is particularly strong demand for cheese, butter and skimmed milk powder. This comes against a backdrop of wider inflationary pressures. The board will continue to monitor developments,” Murphy added.

Murphy also said that the board “looks forward” to engaging with members over the coming weeks in relation to the proposed acquisition of Glanbia plc’s stake in GI, which was announced this week.

Both the co-op and the plc announced on Wednesday (November 10) that they had signed a non-binding agreement which will see the former acquire the latter’s 40% interest in GI.

Subject to the successful conclusion of contract negotiations and the relevant shareholder approvals within both the plc and the co-op, the latter proposes to pay €307 million to acquire the plc’s shareholding.

The plc will contribute €8 million related to pension, rebranding and separation costs in connection with the proposed transaction.