Glanbia cuts milk price amid global downturn
It said yesterday it will pay its member suppliers 28c per litre including Vat for June milk.
This price is inclusive of 1 cent per litre from the 2013 Milk Price Stability Fund which will be paid to all suppliers and a 1 cent per litre Glanbia Co-Operative Society support payment to its members. It said Glanbia Ingredients Ireland has reduced the market milk price for June by 1.5 cent per litre to 26 cent per litre.
In the June milk payment, Glanbia Ingredients Ireland will release the entire €2.6m remaining of the €5m Milk Price Stability Fund.
This was created during very strong dairy markets in 2013. For June milk, Glanbia Ingredients Ireland suppliers will receive a minimum of 1.0 cent per litre including Vat from the fund.
The board of Glanbia Co-operative Society says it has decided to pay members who have signed a milk supply agreement a bonus of 1.0 cent per litre (including Vat) for June manufacturing and liquid milk supplies.
Suppliers to Glanbia Ingredients Ireland that are not members of the society will be entitled to all 2015 support payments on a retrospective basis provided they avail of an opportunity to join the society this year.
Glanbia Ingredients Ireland is a 40-60 joint venture between Glanbia Co-op and Glanbia plc. It processes 1.6 billion litres of milk or 30% of Ireland’s milk pool into dairy ingredients for export.
IFA Dairy Committee chairman Sean O’Leary said a global market downturn was more prolonged than expected. Dairy farmers have seen their milk prices fall 28% in the last 13 months, reducing their margin by 78%.
