Glanbia announces milk price for January supplies

Glanbia has become the second dairy processor to announce its milk price for supplies in January, increasing its overall offering.

The company will pay its member milk suppliers 35.1c/L, including VAT, for January creamery milk supplies at 3.6% butterfat and 3.3% protein.

The Glanbia Ireland base price for January is unchanged at 30.68c/L, including VAT, at the same constituents.

In addition to the base price, a seasonality bonus of 4c/L, including VAT, will be paid on all quality creamery milk supplied in January, the processor said.

However, a 0.4c/L including VAT support payment that was paid last month, will not be included this month.

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 processor said that the Glanbia Ireland base price, seasonality bonus and ‘Share of GI Profit’ payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.

Just this week it was announced that Irish processors would also express their prices in terms of 4.2% butterfat and 3.4% protein from now on and, in line with this, Glanbia noted that its milk price for January is 38.32c/L based on those constituents.

On the seasonality bonus, a Glanbia statement said the bonus “is a payment to encourage creamery milk suppliers to flatten the milk supply curve”.

“Liquid milk contract holders and autumn calving scheme participants receive their specific bonus payments, while the seasonality bonus is confined to creamery milk suppliers,” the company said.

Glanbia Ireland chairperson John Murphy said: “While lockdowns are having a negative impact on food service, they are positive for retail demand.

“Milk supply growth is strong across all the main milk production regions, but rising feed costs may curb supply growth in the EU,” he noted.