Glanbia and Lakeland add 2c to their milk price

Milk suppliers to Glanbia will get 30c per litre for November milk, with Lakeland suppliers near behind on 29cpl; Lakeland will also pay its suppliers 3cpl under its voluntary out-of-season milk production scheme, bringing its effective price to 32cpl for November milk.

IFA dairy chairman Sean O’Leary described Glanbia and Lakeland’s decisions to increase their November milk prices by 2cpl as a welcome step towards delivering sustainable milk prices in 2017.

He urged all other co-ops, who are meeting this week to set November milk prices, to follow suit.

“EU average dairy market returns of 32c per litre for November and the Ornua PPI increase justifty a significant increase this month,” Mr O’Leary said.

“At the Dairy Forum last week, we heard from industry experts that the global supply of milk was unlikely to increase significantly within the next 12 months.

“After two years of negative margins on farms in most milk production regions and significant increases in cow culls, volumes will be very slow to recover, and dairy markets and prices should therefore be reasonably buoyant in 2017.”

The Ornua Purchase Price Index for November increased to 99.4 points, equal to around 29.2cpl.