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Glanbia Ireland will pay its milk suppliers 33.11c/l excluding VAT for August manufacturing milk supplies.
Glanbia Ireland has also announced that it will pay its milk suppliers a 1c/l bonus on all milk supplied in January to June of 2017.
The 1/cl bonus payment applies to all liquid and manufacturing milk supplies.
Milk volumes allocated to Glanbia’s Fixed Milk Price Schemes will also benefit from the flat 1c/l bonus payment.
Glanbia Ireland chair Henry Corbally said: “While the short-term outlook remains positive, we note that the current high prices are leading to higher production in key regions and may affect demand when fully passed through the supply chain.
"Exchange rates, particularly the weakening dollar, may also have an impact on returns in the medium term. The board will continue to monitor market developments on a monthly basis.”
On the bonus payment, Corbally said: "As a business majority owned by our farmers, we are always committed to returning the highest possible milk price to our suppliers.
"We are pleased that the business is in a position to make this very significant payment to our farmers for all milk supplied in the first half of this year.”
2018 milk prices
Meanwhile, speaking at last week's Agricultural Science Association (ASA) conference, chief executive and director of Glanbia Ireland, Jim Bergin, said dairy farmers can expect a solid year of milk prices in 2018.
He said that markets are expected to make good returns, although there are factors which could negatively influence the price.
The current instability in the dollar is his "biggest factor" in determining milk price in 2018.
“It (the dollar) is considerably weaker than what it was.
“Coupled with that, New Zealand will play its game and Europe is producing more. (All of this) will have a more sobering aspect on the price,” Bergin said.
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