Glanbia has become the first processor to announce its milk price for April, announcing a reduction in price on the previous month.
Glanbia will pay its member milk suppliers 28.42c/L including VAT for April creamery milk supplies at 3.6% butterfat and 3.3% protein.
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 Glanbia Ireland base price and Glanbia Co-op Share of GI Profit payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.
The actual average price paid by Glanbia for April creamery milk, based on delivered constituents, will be 31.45c/L, including GI Share of Profit payment, a spokesperson for the processor said.
This reduction in base milk price is due to the negative impact of the Covid-19 pandemic on dairy market returns, the representative added.
Glanbia chairman Martin Keane said: “Dairy markets continue to be impacted by Covid-19 and the current returns from our basket of products unfortunately require an adjustment in milk price.
The pace of recovery in consumer activity, as well as global milk supply trends, will be key factors driving dairy market movements in the months ahead.
“The board will continue to monitor the situation on an on-going basis.”
Special dividend payment
The board of Glanbia Co-op has approved the distribution of share interest of 13.5c per share to all members.
This €5 million share interest distribution was approved at a special general meeting (SGM) of Glanbia Co-op held on Tuesday, April 29, and will be paid to all members on the share register on the date of that meeting.
It is aimed to complete the transfer of this payment to qualifying members’ bank accounts by mid-May, the co-op said.
Coronavirus impact
All Glanbia Ireland milk processing facilities continue to operate to their planned capacity levels for this time of year, the processor said.
Keane commented on this, noting: “As a business we are continuing to take all appropriate measures to deal with the coronavirus challenge.
“We are deeply appreciative of the great commitment of our farmer suppliers, our team of hauliers and our dedicated workforce who are all ensuring that record peak milk volumes are currently being handled very well by all links in the supply chain.”