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Glanbia has held its milk price for May supplies at 27.1c/l excluding VAT at 3.6% butterfat and 3.3% protein.
This includes a 0.18c/l, excluding VAT, payment to reflect weather-related challenges on farms.
Farmer members will also receive a 0.4c/l, excluding VAT, payment from Glanbia Co-op on all milk supplied this month as their share of GI profit.
The Glanbia Ireland base price, the share of GI profit and the weather-related payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.
The actual average price paid by Glanbia for May creamery milk, based on delivered constituents, will be 30.01c/l, excluding VAT.
Delicately balanced
Glanbia chair Martin Keane said markets are delicately balanced at present.
“There has been a welcome recovery in butter and skim milk powder prices over the last month, albeit from a low base. Global milk supply and demand movements over the coming months will need to be closely monitored as economies gradually re-open,” he said.
The Glanbia chair acknowledged the great efforts being made to overcome coronavirus-related challenges.
“Thank you to all of our employees, farmers and contractors who ensured that our facilities and our supply chain operated smoothly through [the] peak. It is a great tribute to all involved that we processed a record 90m litres per week at peak, despite COVID-related restrictions.”
Fixed milk price
Glanbia has launched phase 16 of its fixed milk price scheme, with a base price of 28.46c/l excluding VAT, at reference milk constituents of 3.6% butterfat and 3.3% protein.
This voluntary scheme will run from 1 August 2020 to 31 December 2022.
Any seasonality bonus payments or additional payments made by Glanbia Co-op to members, including the 0.4c/l share of GI profit, would be paid on top of the fixed milk price, a Glanbia spokesperson said.
The scheme will be open to all Republic of Ireland-based creamery milk supplies. In the event of over-subscription, allocations will be prioritised to GI customers.
On Thursday, Lakeland also set its milk price for May supplies. It held its price for May at 27.51c/l, excluding VAT.
IFA dairy chair Tom Phelan said Lakeland and Glanbia holding the May milk price must be the signal that stops the slide and marks the beginning of improved returns for farmers.
He said the decision to hold the price was badly needed to minimise damage to farmers’ confidence as the drought was starting to bite.
“Other co-ops must at the very least hold their May milk price. However, farmers would legitimately expect better prices from now on, and will need them to support their rapidly eroding cashflow,” he said.
“European butter and SMP spot quotes have been rising steadily for seven weeks now by the equivalent of 5.6c/l. The most recent EU Milk Market Observatory average market quotes for the same products and over the same period has risen by the equivalent of 3 c/l.
“Co-ops must prepare to increase farmgate prices before the end of peak,” he said.
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