Glanbia holds milk price for December supplies

Glanbia has announced that it will pay its suppliers 30c/L including VAT for December manufacturing milk supplies.

Glanbia Ingredients Ireland (GII) has increased its base price for December by 1c/L to 30c/L including VAT for manufacturing milk at 3.6% fat and 3.3% protein.

In light of this decision, there will be no Glanbia Co-operative Society support payment to members this month.

Glanbia Chairman Henry Corbally said that the strong recovery in Glanbia’s milk price in the past six months has resulted in a positive conclusion to a very challenging year for the dairy sector.

Yesterday, Lakeland increased the milk price paid for December supplies to 30.28c/L including VAT.

The decision to increase the December price by 1c/L follows on from last month’s decision to increase the November milk price by 2c/L to over 29c/L including VAT.

ICMSA President John Comer this week encouraged co-op boards to look at what the market is returning and to maximise the price paid back to the primary producer.

“There are a lot of positive realities in the market place at the moment with fairly strong returns.

“Further contraction in supply is feeding into this and glitches in recent Global Dairy Trade auctions are not significant.”

Meanwhile, the Ornua PPI (Purchase Price Index) increased for a sixth consecutive time in December, reflecting higher market returns in the month across all products, Ornua announced.

The monthly indicator of market returns on dairy products purchased by Ornua (typically butter, cheese, whole milk powder and protein products) for December increased to 103.8 points.