Glanbia suppliers ‘furious’ as price gap widens

Dairy farmers who supply Glanbia Ireland are “furious” over a widening gap in base milk prices, according to the Irish Farmers’ Association (IFA).

Commenting on yesterday’s (Tuesday, October 13) milk price increases from Lakeland of 1c/L and Glanbia of 0.4c/L (top-up for co-op members) IFA Dairy Committee chairman Tom Phelan said:

“Any price increase is welcome, but Glanbia farmers are angry because their price expectations are not being met.

Not only has the price gap between themselves and their northern counterpart not been closed – but it has in fact widened. Farmers are justified in asking why Glanbia cannot pay this price.

The IFA says that it believes market trends are positive.

The last two Global Dairy Trade (GDT) auctions are up 2.2% and 3.6% respectively; the Ornua total pay-out for September milk – including the Ornua Value Payment – increased by 1.3c/L; and future contracts offered to Kerry suppliers for next year (March to October, 2021) are set at 32c/L, the association noted.

“I would urge all processors meeting in the coming days to set a milk price to reflect these positive trends and pay at least 1c/L more for September milk,” Phelan concluded.

Kerry reveals Forward Price Scheme 17

Earlier today, Kerry Group outlined details on its latest forward price scheme.

Commenting, a spokesperson for the processor said: “Kerry Agribusiness Forward Price Scheme 17 will be available to milk suppliers for online application today, Wednesday, October 14, 2020, at 2:00pm and will close at 2:00pm on Wednesday, October 21, 2020.”

In terms of the details, it was noted that the offer price is confirmed at 32c/L including VAT. This is the price, based on milk solids of 3.30% protein and 3.60% butterfat, that will be paid from March to October 2021, the group says.

The maximum volume that can be applied for is 30% of a supplier’s annual contracted milk volume.