Glanbia Ingredients Ireland (GII) has added another 2c/l to October’s base milk price, after September milk price went up by the same amount.
Glanbia will therefore be paying its member suppliers 26.7c/l excluding VAT for October manufacturing milk supplies based on 3.3% protein and 3.6% fat. This price is inclusive of a 1c/l Glanbia co-op support payment to its members.
The board of Lakeland, the first to set October milk price, met on Friday of last week, and decided to add 1c/l, bringing the amount to 25.6c/l excluding VAT.
And earlier this week, the Carbery group of west Cork co-ops decided a 1.5c/l price increase for October milk with the four co-ops within Carbery – Drinagh, Barryroe, Lisavaird and Bandon – deciding in the coming days if they will apply the increase to their suppliers.
Reacting to the news of Carbery’s increase, IFA national dairy chairman Sean O’Leary said the announcement means the co-ops would be paying 29c/l to 30c/l including VAT – making them the first of any co-ops to reach that level since May 2015.
“I believe this proves that other co-ops can do considerably better than 1c/l on October milk when they meet this week to set the milk price. I would remind them that the Ornua PPI justifies at least a 2c/l increase, while the EU average dairy market returns are equivalent to a milk price of at least 30c/l,” Sean O’Leary said.
In October the purchase price index (PPI) increased for the fourth consecutive month. The index came to 95.9 in October, up from September’s PPI of 92.2.
According to Ornua, October’s PPI equates to a farmgate price of 27.9c/l for October milk.
And, earlier this month, the global dairy trade (GDT) surged by more than 11% following a sharp rise in WMP prices. The next GDT auction will take place later today (Tuesday).