Two dairy processors have announced that they will increase the November milk price paid to farmer suppliers.
Glanbia has announced that it will pay its member suppliers 30c/L, including VAT, for November manufacturing milk supplies.
This price is inclusive of a 1c/L Glanbia Co-operative Society support payment to its members.
Glanbia Ingredients Ireland (GII) has increased its base price by 2c/L to 29c/L, including VAT, for manufacturing milk at 3.6% fat and 3.3% protein. The GII base price is up 9c since July.
The Board of Glanbia Co-operative Society has decided to pay its members a support payment of 1c/L (including VAT) for November manufacturing and liquid milk supplies.
Henry Corbally, Glanbia Chairman, said that the Board was pleased to be in a position to return a November price of 30c/L to members given the challenging markets earlier this year.
“Recent milk supply reductions in key production regions have led to a swift and very welcome recovery in dairy market prices.
“However, a number of uncertainties remain in the global environment. The Board will continue to monitor markets on a monthly basis,” he said.
A spokesperson for Lakeland Dairies also confirmed to Agriland that it has increased its November milk price by 2c/L, bringing the price paid to farmer milk suppliers to over 29c/L inclusive of VAT.
When the additional 3c/L for voluntary out of season milk production scheme is included, it brings the price to over 32c/L for November milk.
The increase in price comes after the Ornua Purchase Price Index (PPI) increased for the month of November to 99.4 points, the fifth consecutive increase in the PPI this year.
The November PPI is the equivalent of 29.2c/L, VAT inclusive and is based on Ornua’s product purchase mix and assumed costs of 6.5p/l.
In October the PPI stood at 95.9 points, while in September the PPI was 92.2.
This increase in the price index comes as co-ops set the milk price for November milk and follows on from a fourth consecutive increase prices at the Global Dairy Trade auction last week.