Two major dairy processors have, today, announced significant increases to the milk prices paid to their suppliers.
Glanbia has announced that it will pay its members 26c/L for September milk supplies.
The Glanbia milk price is inclusive of a 1c/L of support from Glanbia Co-operative to its members.
Glanbia Ingredients Ireland (GII) has increased its base price by 2c/l to 25c/l including VAT for manufacturing milk at 3.6pc fat and 3.3pc protein.
The Glanbia announcement comes on the back of a decision by the board of Lakeland Dairies has also increased its base price by 1c/l bringing its price to 26c/L including VAT.
Dairy market improvement
Henry Corbally, Glanbia chairman, welcomed the recent dairy market improvement and said that Glanbia will continue to monitor markets on a monthly basis.
Irish milk prices have improved significantly in recent months bouncing back from historic lows of 19c/L in mid-summer. The price rise has been attributed to a notable shift in global dairy market sentiment with milk prices improving in across all key dairy producing regions.
Kevin Bellamy of Rabobank dismissed the 3pc drop in last week’s Global Dairy Trade auction as “a one-off event” and forecast that dairy commodity prices would strengthen further.
He said the recovery “still had legs” as it was based on “a shortage of supply rather than growing demand.”
The Rabobank analyst pointed out that world production was down 3bn litres compared to last year and that this shortfall in supply would sustain what he termed a “gentle recovery” in prices.
He attributed the 3pc fall in the GDT to the Chinese national festival known as ‘golden week’, which meant their traders were not buying last week.
Boards at other main processors will meet over the next few days to set their October milk price.
Source: Independent
