Dairy groups welcome Glanbia’s decision to increase milk price

DAIRY groups have welcomed yesterday’s move by the Glanbia board to increase its January milk price by 1.44c/l to 29.94c/l (+VAT).

IFA national dairy committee chairman Kevin Kiersey said Glanbia’s price increase was a welcome first step in passing back the rising market buoyancy to their suppliers. He said the IFA had identified the scope in January commodity returns for an increase of 1.5c/l, and had emphasised the need for a price lift in the face of feed, fertiliser and fuel cost hikes.

Mr Kiersey said the IFA had forecast that feed, fertiliser and fuel price increases could lift overall milk production costs by 14% in 2011 when compared with 2010 costs.