Co-ops add 1c to 1.5c to June milk prices

Glanbia Ireland’s first milk price announcement saw the country’s biggest milk buyer increase its base price by 1c per litre.

Following the first board meeting of the newly formed Glanbia Ireland entity, a June price of 33cpl including Vat for manufacturing milk at 3.6% butterfat and 3.3% protein was announced.

Milk price announcements previously came from Glanbia Ingredients Ireland (GII), which is now part of the Glanbia Ireland joint venture, 60% owned by Glanbia Co-op and 40% owned by Glanbia plc.

It was established in July, following overwhelming support of Glanbia Co-op members.

Other co-ops have also generally added 1c to 1.5c to their monthly milk prices, as record butter markets globally support prices.

According to the European Commission’s Milk Market Observatory, spot milk prices in the Netherlands and Italy reached their highest levels of four years this week.

And last Tuesday’s Global Dairy Trade Event concluded with the GDT Price Index up 0.2% (ranging from up 3.4% for butter to down 3.2% for skim).

The Dutch farmer organisation, LTO, said it was a significant turning point when the May average in their monthly milk price league of co-ops across the EU increased slightly, having fallen slightly over the previous two months.

Usually, EU milk prices fall in April and May due to milk production peaking.

Instead prices are rising, and LTO said DMK in Germany are to add 2c in July, Arla will add 1.8c, and FrieslandCampina will add 0.5c.

Meanwhile, Glanbia chairman Henry Corbally has revealed the group’s fixed milk price scheme of 32cpl for 2018 was over-subscribed, and allocation volumes will be communicated to suppliers in the coming weeks.