Glanbia has become the first processor to reveal its price for September milk supplies, announcing an increased figure.
Glanbia has announced that it will pay its member milk suppliers 36.6c/L including VAT for September milk, at 3.3% protein and 3.6% butterfat.
Glanbia Ireland (GI) will pay a base price for September of 36.18c/L including VAT at those constituents. This is an increase of 1c/L including VAT from the price for August milk supplies.
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 processor said.
Based on the LTO standard constituents of 3.4% protein and 4.2% butterfat, the Glanbia price for September is 39.94c/L.
Glanbia Ireland chairman John Murphy commented: “Dairy markets have strengthened in recent weeks, mainly due to weaker milk supply from key dairy regions.
“Higher farm input costs and other factors are curbing milk supply growth. There are significant inflationary pressures at all parts of the supply chain, which we are monitoring closely,” Murphy added.
The announcement of milk prices by processors this month follows on from an increase in the latest Ornua Purchase Price Index (PPI).
The PPI for September is 121.8, or 36.6c/L including VAT. This is based on Ornua’s product mix and assumed member processing costs of 7c/L and excluding member margin.
This is an increase of 1.3c/L.
Farm organisations have been calling for processors to keep pace with the PPI this month.
Speaking ahead of this coming round of milk prices, the Irish Creamery Milk Suppliers’ Association (ICMSA) said last week that processors should “engage with reality” regarding the setting of a milk price for September.
Meanwhile, the Irish Farmers’ Association (IFA) also called for processors to reflect the Ornua PPI.