Glanbia lowers price for July milk supplies
Glanbia has become the first processor to announce its milk price to farmers for July milk supplies.
Revealed today, Monday, August 12, Glanbia will pay its member milk suppliers 29.5c/L including VAT for July manufacturing milk supplies.
Glanbia Ireland (GI) will pay a base milk price for July of 29c/L including VAT, for manufacturing milk at 3.6% fat and 3.3% protein.
The board of Glanbia Co-op has decided to continue to make a support payment to members of 0.5c/L including VAT for July milk supplies, according to the company.
The Glanbia Ireland price and the Glanbia Co-op support payment will be adjusted to reflect the actual constituents of milk delivered by suppliers, the firm added.
The actual average price paid by Glanbia for July manufacturing milk, based on delivered constituents, will be 32.97c/L including co-op support payment, according to the processor.
Chairman Martin Keane said: “Glanbia Ireland’s milk price for July has been adjusted due to weaker dairy market returns, particularly for butter.
While milk production in key regions such as the US and the EU is at lower levels than last year, demand for some dairy products is subdued in a number of markets.
“The board will continue to monitor developments on a monthly basis. Suppliers should note that current milk prices do not fully reflect the weaker dairy market.”
Ornua PPI falls for July
Last week, the Ornua Purchase Price Index (PPI) has lowered in index for the month of July, according to the dairy exporter.
Revealed by Ornua on Friday, August 9, the PPI for July 2019 is 104.0, adjusted down from 105.7 in June.
The July index converts to 30.9c/L, including VAT, based on Ornua’s product purchase mix and assumed costs of 6.5c/L, the cooperative added.
The adjustment for July reflects sharply weaker butter prices, partially off-set by improved powder prices and flat returns for cheese, according to a spokesperson for Ornua.