Glanbia announces May milk price

Glanbia will pay its Member milk suppliers 28.62 cent per litre (cpl) (including VAT) for May creamery milk supplies at 3.6% butterfat and 3.3% protein. This includes a 0.2 cpl (including VAT) payment to reflect weather-related challenges on farms.

 Glanbia Ireland (GI) will pay a base milk price for May of 28 cpl (including VAT) for creamery milk at 3.6% fat and 3.3% protein. This is unchanged from the April base price.

In addition, the Board of Glanbia Ireland has decided to make a payment of 0.2 cpl (including VAT) on all May milk volumes to reflect weather-related issues on farms. A Glanbia Ireland survey of over 500 milk suppliers found a significant decline in average grass growth rates, with 58% of milk suppliers in the four worst-affected counties currently feeding silage.

Farmer Members will also receive a 0.42 cpl (including 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 31.64 cpl.

Glanbia Chairman 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.”

The Glanbia Chairman 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 peak. It is a great tribute to all involved that we processed a record 90 million litres per week at peak, despite Covid-related restrictions.”

Fixed Milk Price

Phase 16 of the Glanbia Fixed Milk Price scheme has been launched with a base price of 30 cpl (including 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-operative Society to Members, including the 0.42 cpl Share of GI Profit, would be paid on top of the fixed milk price.

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.