The Irish Creamery Milk Suppliers Association (ICMSA) has welcomed the decision by Glanbia Ireland to increase its June milk price by 1.68c/L.
Chairperson of the ICMSA’s dairy committee Ger Quain said it was “good to see the biggest processor of milk in Ireland stepping forward in this way and paying a market-derived price”.
The 1.68c/L increase has brought Glanbia’s June base price to 29.68c/L. Farmer members will also receive a 0.42c/L (including VAT) payment from Glanbia Co-op on all milk supplied this month as their ‘Share of GI Profit’.
June milk prices so far have been ‘positive’
In advance of meeting Glanbia this week, Quain said that the ICMSA would ask the processor to pay at least 30c/L for June milk as “dairy market data had clearly shown a recovery from the falls of early May”.
He also sought to ensure that this increase is not a “once-off”, asking Glanbia to “lead the way upwards” in terms of milk prices in the coming months.
Last week, Lakeland Dairies was the first processor to announce its June milk price – revealing an increase of 1c/L for its figure for last month’s milk, leading to a base price of 30c/L (including VAT) for June milk.
Commenting on the price increases, Quain said:
The ICMSA hopes that this will provide the impetus for other cooperatives to step up and increase their milk price now the first two announcements – Lakeland and Glanbia – have both been positive.
“The other co-ops are due to set their milk price in the coming week and very serious questions will be asked of any processor who does not come up to the 30c/L price and still wants to let farmer-suppliers continue to take a hit that they have been taking since March,” Quain concluded.
Dairy markets strengthened in recent weeks
Yesterday, Monday, July 13, Agriland reported that the “actual average price” paid by Glanbia for June creamery milk, based on delivered constituents, will be 33.21c/L.
Glanbia chairman Martin Keane said that “dairy markets have strengthened in recent weeks, helped by the tentative re-opening of some food-service outlets and government interventions”.
“However, given the weak economic data and high rates of coronavirus in many key importing regions, the short and medium-term market direction remains uncertain,” he added.