Glanbia cuts its June milk price, Kerry holds at 28c/L
Glanbia has cut its June milk price, after ‘holding’ its price for the past three months, using a bonus top-up from farmers to keep the price at 28c/L (including VAT).
Meanwhile, a spokesman for Kerry confirmed it is holding its June milk price at 28c/L (inc VAT).
He said cheques would be issued later this week and the moves comes amid a continuing fall in international milk prices including the GLobal Dairy Trade fall of over 10% on Wednesday.
In recent days Lakeland Dairies also confirmed a cut to its June milk price to 28c/L – down 0.75c/L.
The Glanbia price is inclusive of 1c/L from 2013 Milk Price Stability Fund which, it says, will be paid to all suppliers and a 1c/L Glanbia Co-Operative Society support payment to its members.
Glanbia says that reflecting current weakness in global dairy markets, Glanbia Ingredients Ireland (GII) has reduced the market milk price for June by 1.5c/L to 26c/L.
In the June milk payment, GII will release the entire €2.6m remaining of the €5m Milk Price Stability Fund (MPSF) created during very strong dairy markets in 2013, it says.
For June milk, GII suppliers will receive a minimum of 1.0c/L including VAT from the MPSF, it says.
It goes on to say that “being conscious of the current challenges in global dairy markets, the Board of Glanbia Co-operative Society has decided to pay members who have signed a Milk Supply Agreement a bonus of 1.0c/L (including VAT) for June manufacturing and liquid milk supplies”.
Suppliers to GII that are not currently members of the society will be entitled to all 2015 support payments on a retrospective basis provided they avail of an opportunity to join the society this year – application process to commence shortly, it says.
Meanwhile, the Ornua Purchase Price Index (PPI), a monthly indicator of market returns on dairy products sold by Ornua fell for the second consecutive month in June.
It comes as dairy product prices fell again at the most recent Fonterra Global Dairy Trade (GDT) auction.
The event represents the ninth negative auction for prices in a row and the GDT index is now 50% lower than the highs seen in February 2014.