Glanbia milk price falls from 36.1c to 34.6c

'Markets can sustain an increased price for March milk' 
Glanbia milk price falls from 36.1c to 34.6c

The March milk price is 37.65 cpl at the LTO constituents of 4.2% butterfat and 3.4% protein. Picture: Mark Stedman, RollingNews.ie

The Glanbia milk price falls from 36.1c per litre (cpl) (including VAT) for February creamery milk to 34.6 cpl (including VAT) for March, at 3.6% butterfat and 3.3% protein.

Glanbia Ireland pay a base milk price for March of 34.18 cpl, up 1.5 cpl from February. 

Added on is the 0.42 cpl payment from Glanbia Co-op on all milk supplied this month as their share of GI profit. But the seasonality bonus of 3 cpl is gone.

The March milk price is 37.65 cpl at the LTO constituents of 4.2% butterfat and 3.4% protein.

Glanbia Ireland chairman John Murphy said: “Increased consumption of fresh dairy produce in China has been a key factor driving higher pricing this year.

“In Europe, strong retail demand continues to partially offset weaker foodservice sales.

“Market sentiment is now reasonably stable, as we approach peak milk supply season in Europe, and see strong milk supply growth in the US.

“Some markets, including butter, have been a little more volatile over the past month. 

Higher prices working their way through the supply chain may also impact on demand.”

Lakeland Dairies said this week it has increased the base price for March milk by 1c, compared to February, to 34.34 cpl (including Vat/lactose).

An unconditional Lakeland bonus of 1c is also paid on all March milk.

A spokesperson for Lakeland Dairies said: “Global milk supply and demand trends are delicately balanced as we enter the peak milk production season in Ireland and Europe.

“In the main, commodity prices have settled, with general stability in the market. 

"Outcomes for the rest of the year will depend considerably on the success of ongoing vaccination programmes and the reopening of economies around the world, combined with milk supply remaining in line with projections and continuing stable demand for dairy products.”

In other milk price news, the Ornua Purchase Price Index (PPI) monthly indicator of market returns on dairy products purchased by Ornua has risen 4% from February to March, continuing its steady rise of 13.5% in the past year.

IFA dairy chairman Stephen Arthur said markets can sustain an increased price for March milk.

He said the March Ornua PPI of 112.6, up from 108.5 in February, is the equivalent of 35.9 cpl for milk, when adjusted to include the Ornua Value Payment.

“While many processors will be removing or reducing seasonal milk bonuses this month, there is no excuse for milk price to fall as a consequence,” he said.

“Processors are very quick to reduce milk price when markets aren’t as strong, but very slow to pass on returns when markets are positive.

"Milk processors must match the Ornua PPI this month. 

"Farmers must get their fair share of the buoyant market.”

Mr Arthur said future milk expansion and growth have come into sharp focus for dairy farmers since the announcement of the Glanbia peak management supply policy, and with greater environmental commitments and restrained supply, farmers must get the maximum return from the marketplace to sustain their businesses.

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