Processors announce milk prices for February supplies

Both Glanbia and Lakeland Dairies have announced their milk prices for February supplies recently.

Glanbia Ingredients Ireland (GII) has decided to hold its base price for February at 31c/L, including VAT, for manufacturing milk at 3.6% fat and 3.3% protein.

Glanbia suppliers will continue to be paid 31c/L, following a 1c/L increase by the processor for January supplies.

The board will continue to monitor dairy markets on a monthly basis, Glanbia Chairman, Henry Corbally, said.

Lakeland Dairies also decided to hold its price for February supplies, at 31.28c/L including VAT.

This follows on from the processor’s decision to increase its January price by 1c/L.

Meanwhile, the Ornua Purchase Price Index (PPI) for February remained unchanged from January, at 105.4 percentage points.

This is the equivalent of 31.4c/L, VAT inclusive, based on Ornua’s product purchase mix and assumed costs of 6.5p/L.

Ornua has said that the February PPI reflected lower skimmed milk powder (SMP) and butter returns in the month, offset by higher cheese and whey power prices.

The PPI is a monthly indicator of market returns on dairy products purchased by Ornua (typically butter, cheese, whole milk powder and protein products), relative to comparable returns generated in a base year (2010).

Prices continue to fall at the latest GDT auction

At the latest Global Dairy Trade auction prices dropped by 6.3%. The drop came after a decrease in prices at the last auction of 3.2%.

The main driver of the fall in prices was skimmed milk powder (SMP) with prices dropping 15.5% at the latest auction, while whole milk powder (WMP) prices also suffered a decrease of 12.4%.

Cheddar, lactose and rennet casein all registered falls at the most recent GDT event.

The only products that saw price increases were butter (1.2%) and butter milk powder (8.4%).

Analysts at ASB Bank in New Zealand had hinted that WMP prices could fall by 10%, with rain and higher New Zealand milk production putting a dampener on prices.