Glanbia pays 3c/L bonus to hold May milk price at 30.5c/L
Glanbia is to hold its manufacturing milk price for May supplies at 30.5c/L including VAT.
This follows a decision taken by Glanbia Ingredients Ireland (GII) to reduce the base manufacturing price for May by 1.0 c/L to 27.5c/L (including VAT), reflecting ongoing weakness in global dairy markets.
Glanbia Co-op will pay members who have signed a Milk Supply Agreement a bonus of 3.0c/L (including VAT) for May manufacturing and liquid milk supplies. This reflects the decision of the board on 14 April to utilise its resources to maintain milk price at 30.5c/L for the months of March, April and May.
“Dairy markets remain weak, but the strength of the Glanbia model allows us to support our farmer suppliers by keeping our manufacturing price at 30.5c/L for the high milk volume month of May,” said Chairman Henry Corbally.
Suppliers to Glanbia Ingredients Ireland (GII) who have signed a Milk Supply Agreement and who become members of Glanbia Co-operative Society at any time during 2015 will be eligible to benefit from all 2015 milk price supports provided by Glanbia Co-op.
Earlier this week, Lakeland Dairies confirmed it has dropped its May producer price by 1.5c/L to 28.75c/L.
There is a general expectation within the dairy sector that farmgate prices will continue to weaken over the coming months, possibly levelling off at around 25c/L.
The Ornua Purchase Price Index (PPI), a monthly indicator of market returns on dairy products sold by Ornua fell marginally in May.
The result reflects general negative market trends globally for dairy prices.
Ornua (formerly the Irish Dairy Board) saw its PPI for the month of March rise to 100 points, 2.5 points up on the February level.
It was the second positive month in a row for Ornua’s dairy market returns with returns also increasing in February from a January low of 93.
However, in April and now May the PPI fell back below the 100 point mark currently standing at 98.5. The index’s current level is now some 20% lower than the same month in 2014.
The Ornua Purchase Price Index (PPI) is a monthly indicator of market returns on dairy products sold by Ornua (typically butter, cheese, whole milk powder and protein products), relative to comparable returns generated in a base year (2010).