The base price paid to farmers by Glanbia for January milk, along with bonuses (including a new Sustainability Action Payment) will see the potential for a 44.58c/L total price this month.
The ‘share of Glanbia Ireland profit’ payment from the Glanbia Co-op – which traditionally had been 0.42c/L – was paid out for the last time for December milk, and is now discontinued.
This overall price comprises a base price of 40.08c/L including VAT on milk at 3.6% butterfat and 3.3% protein.
This is an increase of 0.5c/L from the price for December, which was 39.58c/L.
As well as the base price, a seasonality bonus of 4c/L including VAT has been confirmed for qualifying milk volumes supplied in January.
The seasonality bonus is paid on all milk supplied in January, including non-contracted volumes from liquid and autumn-calving scheme suppliers.
The processor has also announced a new Sustainability Action Payment of 0.5c/L including VAT to be paid monthly on all milk supplied in 2022 to “recognise the specific sustainability actions undertaken on farm”.
This three-year programme, which Glanbia says will amount to €18 million annually, is designed to “assist suppliers as they continue to enhance the environmental and economic sustainability of their farms”.
The Sustainability Action Payment will also apply to fixed milk price scheme volumes.
Glanbia says that, with these different payments, the total milk price offering based on standard constituents for January is 44.58c/L including VAT.
The base price, seasonality bonus and Sustainability Action Payment will be adjusted to reflect the actual constituents of milk delivered by suppliers, Glanbia said.
Based on standard European constituents of 4.2% butterfat and 3.4% protein, the price is 48.41c/L.
Glanbia Ireland chairperson John Murphy said: “Dairy market sentiment remains strong, with a combination of moderate milk flows from key regions and high input costs continuing to impact global supply.
“Inflation is continuing to impact many elements of the supply chain. The board will continue to monitor developments,” he added.
Meanwhile, the Competition and Consumer Protection Commission (CCPC) has confirmed that it has been notified of the proposed acquisition by Glanbia Co-operative Society Limited of Glanbia Ireland DAC.
The CCPC’s role is to determine whether the proposed transaction would substantially lessen competition in any markets in the State
The body has a deadline of 30 working days to make a determination after the notification of the proposed acquisition. However, this may be extended if it requires additional information.
If the CCPC determines after the preliminary investigation that further examination is needed, a ‘Phase 2’ investigation could be opened which gives it 120 working days to make a full determination.
The CCPC can either, clear a transaction, block it or clear it subject to binding commitments.