Milk prices hold for June
While global dairy markets are stable, there are concerns over the Covid-19 pandemic and the potential for new variants to disrupt activity. File Picture.
Both Glanbia Ireland and Lakeland Dairies have held their base milk price for June.
In the Republic of Ireland, Lakeland Dairies has held its base milk price for June at 36cpl, including VAT, for milk at 3.6% fat and 3.3% protein while the price has been held at 29.2p/litre in Northern Ireland.
The co-op says that global markets are currently demonstrating a reasonable balance of supply and demand and European milk supplies - which have been constrained by colder than average temperatures in recent months - are now increasing gradually in line with weather improvements across the continent.
“Worldwide milk supply is also increasing at a strong pace with the main dairy-producing countries exporting higher volumes,” a spokesperson added.
“While global dairy prices remain stable for now, concerns continue in relation to the ongoing pandemic crisis worldwide, the variable global pace of vaccinations and the potential for new variants to disrupt consumer and economic activity.
“Foodservice markets continue a gradual recovery however this is coming from a significantly lower base in view of the ongoing impacts of the pandemic.
“Lakeland Dairies will continue to monitor the market closely in the coming weeks.”
Glanbia, meanwhile, will pay its Member milk suppliers 35.6cpl including VAT for June creamery milk supplies at 3.6% butterfat and 3.3% protein - unchanged from the May base price.
Farmer Members will also receive a 0.42cpl including VAT payment from Glanbia Co-op on all milk supplied this month as their ‘Share of GI Profit’.
The Glanbia Ireland base price and Co-op Share of GI Profit payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.
The Glanbia milk price for June creamery milk, based on LTO constituents of 4.2% butterfat and 3.4% protein, is 38.83cpl.
“The returns for most dairy product categories are generally stable at present,” its chairman, John Murphy said.
“Increased global milk supply from key regions in recent months and the variable pace of food service reopening are notable developments.
“The Board will continue to monitor developments on a monthly basis.”
Dairygold has maintained the June Quoted Milk Price at 35.75cpl, based on standard constituents of 3.3% Protein and 3.6% Butterfat, inclusive of bonuses and VAT.
This milk price equates to an average June farm gate milk price of 38.8cpl, based on average June milk solids, achieved by Dairygold Milk Suppliers.
The Quoted Milk Price for June based on EU Standard constituents of 3.4% Protein and 4.2% Butterfat is 39.1cpl.
“Asian demand for dairy has eased somewhat in recent weeks while global milk supplies are now predicted to be stronger than earlier forecasted," a company spokesperson added.
"As is customary, the Dairygold Board will continue to monitor markets closely and review milk price on a month by month basis.”
