Glanbia announces milk price for September supplies

Glanbia has become the first processor to reveal its milk price for September supplies today (Tuesday, October 13), announcing that it has held its base price.

Glanbia will pay its member milk suppliers 31c/L including VAT for September creamery milk supplies at 3.6% butterfat and 3.3% protein.

This is an increase of 0.4c/L on the August milk price, the processor says.

Glanbia Ireland will pay a base milk price for September of 30.18c/L including VAT for creamery milk at 3.6% fat and 3.3% protein. This is unchanged from last 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 co-op will also pay its members a bonus of 0.4c/L (including VAT) as an additional support payment.

The Glanbia Ireland base price and co-op payments will be adjusted to reflect the actual constituents of milk delivered by suppliers. The actual average price paid by Glanbia for September creamery milk, based on delivered constituents, will be 38.15c/L, the company says.

Glanbia Ireland chairman John Murphy said:

Overall dairy consumption and exports have been resilient with prices reasonably steady.

“However, the Covid-19 pandemic continues to impact on global markets and global economies, particularly in the foodservice sector.”

Glanbia Loyalty Scheme

Glanbia Ireland will pay feed bonuses to participants in the Glanbia Milk and Feed Loyalty Scheme (GLS) for dairy feed purchases made up to the end of September.

This five-year scheme, which commenced on January 1, 2018, pays a Loyalty Bonus of €30/L on all dairy feed purchased by participants.

For the period to the end of September, this will be worth an average of €2,600 to GLS participants who are within the terms of the GLS agreement, the company concludes.

Glanbia announces milk price for September supplies

Glanbia Ireland has become the latest processor to announce its price for September milk supplies.

Glanbia will pay its member milk suppliers 29c/L including VAT for September manufacturing milk supplies at 3.6% butterfat and 3.3% protein.

Glanbia Ireland will pay a base milk price for September of 28c/L including VAT, for manufacturing milk at 3.6% fat and 3.3% protein. This is unchanged from the August base price.

The board of Glanbia Co-op has decided to make a support payment to members of 1c/L including VAT for September milk supplies. This is an increase from the 0.5c/L support payment made for August, a spokesperson for the processor said.

The Glanbia Ireland base price and the Glanbia Co-op support payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.

Glanbia chairman Martin Keane said: “Global milk supply growth for 2019 is weaker than forecast, which has improved the market supply-demand balance.

However, trade issues continue to impact on dairy markets, with the proposed US tariffs on Irish butter and cheese of particular concern.

“Greater clarity on Brexit is also important for dairy markets. The board will continue to monitor developments on a monthly basis.”

Lakeland price

On Friday, October 11, Lakeland Dairies announced its decision to hold its current price for September.

In the Republic of Ireland, a price of 30.03c/L including VAT has been agreed for milk supplied in September. The price has been held from last month.

In Northern Ireland, a price of 24.50p/L will be paid for September supplies. Again, the price has been held from last month.

Commenting on the price, the co-op said:

The escalation of trade wars as well as the continued uncertainty around Brexit is casting a shadow on the dairy markets.

“Returns for many of the key products have now stabilised after a period of significant price pressure over the summer. Lakeland will continue to monitor the market closely in the coming weeks.”