Glanbia has today (Friday, June 10) announced that it will pay its milk suppliers a total of 52.08c/L, including VAT, for May milk supplies at 3.6% butterfat and 3.3% protein.
The price, which is an increase of 2c/L on the total price for April, consists of the following:
- The Glanbia base milk price for May is 46.58c/L(including VAT);
- The co-op board has decided to increase the Agri-Input Support Payment by 2 c/L to 5c/L on all milk supplied in May;
- A Sustainability Action Payment of 0.5c/L (including VAT) is being paid monthly on all milk supplied in 2022 to recognise specific sustainability actions being undertaken on farm.
The Glanbia total price for May creamery milk, based on LTO constituents of 4.2% butterfat and 3.4% protein, is 56.50c/L (including VAT). This includes the Sustainability Action Payment and Agri-Input Support Payment.
The processor said that the base price, Sustainability Action Payment and Agri-Input Support Payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.
Commenting on the announcement, Glanbia Co-op chair John Murphy said:
“Dairy markets continue to perform at a high level, with a balance between reduced global milk supply and some inflationary pressures impacting on consumer demand in certain markets.
“In light of the ongoing high farm input costs, the board has decided to increase the Agri-Input Support payment to 5c/L for this month. It is not currently envisaged that the Agri-Input Support Payment will increase beyond this level,” he stated.
“The Agri-Input Support Payment will be paid on all milk supplied in May and is expected to continue for the coming months.
“The Board will continue to monitor the situation on a monthly basis,” Murphy concluded.
Glanbia milk payments
Glanbia has also reminded farmers that a six-month pilot change to the timing of milk payments will begin next month, with the June milk payment in July.
Commencing next month, approximately 50% of the payment due to milk suppliers will be paid early (on the 9th of the month).
Once milk price for the month is set, the remaining balance due to milk suppliers will be paid by the 25th of the month.
Glanbia has advised its milk suppliers to check their banking arrangements to ensure a smooth transition to the new process.