Glanbia has become the latest processor to reveal its milk price for February, announcing an increased figure.

The processor revealed its price following a meeting of the board today (Thursday, March 11).

Glanbia Ireland will pay a base milk price for February of 32.68c/L including VAT for creamery milk at 3.6% fat and 3.3% protein.

This is an increase of 2c/L from the January base price, the processor confirmed. In addition to the base price, a Seasonality Bonus of 3c/L including VAT will be paid on all creamery milk supplied in February.

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’.

This means that Glanbia will pay its member manufacturing milk suppliers 36.1c/L including VAT for February creamery milk supplies at 3.6% butterfat and 3.3% protein.

The Glanbia Ireland base price, Seasonality Bonus and Co-op “Share of GI Profit” payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.

The Glanbia milk price for February creamery milk, based on LTO constituents of 4.2% butterfat and 3.4% protein, is 39.40c/L, the processor added.

The Seasonality Bonus is a payment to encourage creamery milk suppliers to flatten the milk supply curve, Glanbia says.

Liquid Milk contract holders and Autumn Calving Scheme participants receive their specific bonus payments, while the Seasonality Bonus is confined to creamery milk suppliers, a spokesperson for the firm said.

Commenting, Glanbia Ireland chairman John Murphy said:

“Dairy market sentiment in recent weeks has been boosted by a combination of factors, including lower than forecast milk supply volumes in key production regions and strong Asian demand.

Other factors include continued government support measures and optimism linked to the tentative easing of Covid-19 restrictions in some countries.

“It is also welcome to see the US and Europe announce a four-month suspension of all tariffs linked to the Airbus and Boeing dispute. The Board will continue to monitor developments on a monthly basis.”

Fixed Milk Price

Phase 17 of the Glanbia Fixed Milk Price scheme has been launched with a base price of 32c/L including VAT and seasonality bonuses, at reference milk constituents of 3.6% butterfat and 3.3% protein.

This voluntary scheme will run for two years and 10 months – from March 1, 2021, to December 31, 2023.

Any additional payments made by Glanbia Co-operative Society to members, including the 0.42c/L Share of GI Profit, would be paid on top of the fixed milk price.

The scheme will be open to all Republic of Ireland-based creamery milk suppliers. In the event of over-subscription, allocations will be prioritised to GI customers, the processor concluded.