Glanbia has announced that it will pay its member suppliers 23c/L for July manufacturing supplies of milk, a 1c/L rise on the June milk price.
This price is inclusive of a 2c/L Glanbia Co-operative Society support payment to its members.
Glanbia Ingredients Ireland (GII) increased its base price by 1c/L to 21c/L including VAT for manufacturing milk at 3.6% fat and 3.3% protein.
The Board of Glanbia Co-operative Society has decided to pay its members a support payment of 2c/L (including VAT) for July manufacturing and liquid milk supplies.
Henry Corbally, Glanbia Chairman, said that the Society Board continues to be conscious of the need to support suppliers through what has been one of the longest slumps in global milk prices.
We have seen some tentative signs that global dairy markets may be turning in the right direction but are also very aware of the ongoing challenges that our suppliers are facing and we’ll continue to do whatever we can to provide tangible and practical support.
“The recently published KPMG Milk Price Review for 2015 demonstrates that Glanbia continues to be a strong, competitive payer for milk while the MilkFlex Fund and the Glanbia Advance Payment (GAP) scheme shows that we are willing to be innovative in how we provide that support,” he said.
Yesterday, Lakeland Dairies was the first processor out of the blocks to set the July milk price. The co-op increased its milk price by 1c/L for July, giving member suppliers 24c/L for supplies.
This reflects a slight improvement in dairy market returns and a Lakeland recognition of difficult farming weather, the spokesperson for the co-op said.
Poor profitability and cash flow difficulties on farms this year were also factors to the increase in milk price.
Glanbia and Lakeland Dairies’ milk price increases for July come after the Ornua PPI, the monthly indicator of market returns on dairy products sold by Ornua, rose earlier this week for the first time in 16 months.
The PPI rose to 81.8 points for July, up from the 81 points the index had in June.
The PPI had dropped significantly over the 14-month period from March 2015 to May 2015, from 101.2 points to 81 points.
Returns on dairy products stabilised in June with prices holding steady.