Glanbia sets price for October milk supplies
Glanbia has revealed its milk price for the month of October, revealing the same price as for last month.
Glanbia will pay its member milk suppliers 29c/L including VAT for October manufacturing milk supplies at 3.6% butterfat and 3.3% protein.
Glanbia Ireland (GI) will pay a base milk price for October of 28c/L including VAT, for manufacturing milk at 3.6% fat and 3.3% protein. This is unchanged from the September base price.
The Glanbia Ireland base price and the Glanbia Co-op support payment will be adjusted to reflect the actual constituents of milk delivered by suppliers, the processor said.
The processor’s chairman Martin Keane said: “There has been a welcome improvement in the price of dairy proteins on global markets, while cheese is stable and the European butter market remains fragile. Overall markets have reacted to seasonal demand and the moderate rate of global milk supply growth in the year to date. The board will continue to monitor developments on a monthly basis.”
Last month, Glanbia announced that it would pay its member milk suppliers 29c/L including VAT for September manufacturing milk supplies at 3.6% butterfat and 3.3% protein.
It was also announced that Glanbia Ireland would pay a base milk price for September of 28c/L including VAT, for manufacturing milk at 3.6% fat and 3.3% protein. This was unchanged from the base price announced in August.
Last month, the board of Glanbia Co-op also confirmed a support payment to members of 1c/L including VAT for September milk supplies. This was an increase from the 0.5c/L support payment made for August.
At the time, Glanbia chairman Martin Keane said: “Global milk supply growth for 2019 is weaker than forecast, which has improved the market supply-demand balance.
However, trade issues continue to impact on dairy markets, with the proposed US tariffs on Irish butter and cheese of particular concern.
“Greater clarity on Brexit is also important for dairy markets. The board will continue to monitor developments on a monthly basis,” Keane had said.
The Ornua Purchase Price Index (PPI) for the month of October was revealed last week, continuing a positive rise from last month, increasing once again.
The index for October 2019 is 105.6, according to Ornua. This is adjusted from an index of 103.8 recorded in September 2019.
The October index converts to 31.5c/L including VAT, based on Ornua’s product purchase mix and assumed costs of 6.5c/L.