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Glanbia and Lakeland Dairies announce milk price for September

Both Glanbia and Lakeland Dairies announce milk price increases for September

Glanbia will pay its Member milk suppliers 31 cent per litre (cpl) (including VAT) for September creamery milk supplies at 3.6% butterfat and 3.3% protein. This is an increase of 0.4 cpl on the August milk price.

Glanbia Ireland (GI) will pay a base milk price for September of 30.18 cpl (including VAT) for creamery milk at 3.6% fat and 3.3% protein. This is unchanged from last month.

Farmer Members will also receive a 0.42 cpl (including VAT) payment from Glanbia Co-op on all milk supplied this month as their ‘Share of GI Profit’. The Co-op will also pay its Members a bonus of 0.4 cpl (including VAT) as an additional support payment.

The Glanbia Ireland base price and Co-op payments will be adjusted to reflect the actual constituents of milk delivered by suppliers. The actual average price paid by Glanbia for September creamery milk, based on delivered constituents, will be 38.15 cpl.

Glanbia Ireland Chairman John Murphy said: “Overall dairy consumption and exports have been resilient with prices reasonably steady. However, the Covid-19 pandemic continues to impact on global markets and global economies, particularly in the foodservice sector.”

Glanbia Ireland will pay feed bonuses to participants in the Glanbia Milk and Feed Loyalty Scheme (GLS) for dairy feed purchases made up to the end of September. This five-year Scheme, which commenced on 1 January 2018, pays a Loyalty Bonus of €30 per tonne on all dairy feed purchased by participants. For the period to the end of September, this will be worth an average of €2,600 to GLS participants who are within the terms of the GLS agreement.

Meanwhile, Lakeland Dairies has announced a milk price for September with the base price increasing. In the Republic of Ireland, a base price of 32c/litre (including VAT) will be paid for milk supplied in September. The base price has increased by 1c/l on the August price.

In Northern Ireland, a base price of 26.25p/l will be paid for September milk. Again, the base price has increased by 1p/l on the August price.

Commenting on the price, Lakeland Dairies said: “There is some stability in the global dairy markets but there are growing worries around the supply / demand dynamic. After a subdued first half of the year, supply in many of the main production areas appears to be ramping up through the second half of 2020.

“With demand still subdued, a major surge in milk supply would be concerning for markets ahead of the critical Christmas buying season. There is also a considerable volume of product in Private Storage which will be back on the market in the coming weeks. Demand will need to ramp up to deal with this extra volume.

“The recent improvement in Foodservice sales is welcome but as all economies deal with a resurgence of Covid-19, the recovery for the sector is stop-start with fluctuations in demand. The entire dairy industry remains hopeful that a Free Trade Agreement between the EU and the UK can be agreed as ending the transition period without a deal would be extremely worrying for exporting companies. Lakeland Dairies will continue to monitor the market closely in the coming weeks.”