Glanbia’s decision to hold the base milk price and increase the co-op milk price support by 0.5c/L, has been described as “a positive first step”.
The Irish Farmers’ Association’s (IFA’s) national dairy chairman, Tom Phelan, said: “Market returns have firmed in recent weeks and months, and would allow Glanbia and other co-ops to improve their base milk prices before year-end.”
Glanbia Ireland will pay a base milk price for September of 28c/L including VAT, for manufacturing milk at 3.6% fat and 3.3% protein. This is unchanged from the August base price.
Concluding, Phelan said: “Glanbia and other co-ops will be able to improve their base milk prices over the coming months, and co-op boards, which are currently meeting to decide on September milk prices, must start focusing on finding ways of passing back more of the improved market returns to farmers,” he concluded.
Glanbia chairman
Commenting on the milk price announcement, 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.”