Glanbia reveals December milk price and 1.1c/L bonus

Glanbia Ireland has become the second processor to announce its December milk price, deciding to hold it at 35c/L including VAT.

As well as this, it confirmed that its suppliers will receive a 1.1c/L bonus on all milk produced between July and December 2017.

Its milk price relates to milk supplies at 3.6% butterfat and 3.3% protein.

Commenting on the matter, Glanbia Ireland chairman Henry Corbally said: “We are pleased that the business met all its performance targets and is in a position to make this very significant payment to our farmers for all milk supplied in the second half of 2017.

“However, current market returns are considerably lower than our milk price; therefore, price adjustments would seem inevitable over the coming months.”

Meanwhile, Lakeland Dairies also revealed its December milk price this morning.

Also Read: Lakeland Dairies announces its December milk price

Its suppliers will receive a base price of 36.5c/L including VAT and including a 1c/L butter bonus for milk produced in the last month of 2017.

1.1c/L bonus

The board of Glanbia Ireland today agreed to pay a 1.1c/L – including VAT – bonus on all milk supplied in July to December of 2017.

This “very significant bonus” on all liquid and manufacturing milk supplies will be included in this month’s milk payment, the processor confirmed.

Milk volumes allocated to Glanbia’s fixed milk price schemes will also benefit from the flat 1.1c/L bonus payment  – as the scheme prices are currently below the market price, the processor added.

Corbally continued: “As a business majority-owned by our farmers, we are always committed to returning the highest possible milk price to our suppliers.

Overall, 2017 was an excellent year for our milk suppliers – with 9% more milk delivered by our farmers and a very strong average milk price.

He also reminded farmer suppliers that Glanbia will hold a full series of regional information meetings for shareholders and suppliers over the next two weeks.

The meetings will provide a detailed briefing on the 2018 market outlook, as well as an update on business developments and Glanbia schemes and services for farmers. Details of the meetings are available online.