The board of Glanbia Ingredients Ireland Limited (GIIL) yesterday agreed to leave their milk price unchanged for June at 37 cent per litre including VAT. Kerry Group, who remained on a VAT inclusive 39 cent for May, are due to set their June price next week.

Farmers will welcome the GIIL news, given that June is high volume month, with 12% - 14% of annual manufacturing milk supply.

The Irish Dairy Board Purchase Price Index (PPI) for June was 121.5, with 100 being the base price paid for products in 2010.

IFA National dairy committee chairman Sean O’Leary welcomed the GIIL decision and said that most co-ops “can and must” hold their June price.

“As the average milk price paid in 2010 was 29.4c/l plus VAT, the June PPI would justify the payment to farmers of 37.5c/l including VAT,” he said. “Most recently published EU average commodity prices, as reported for 29th June through the EU Milk Market Observatory, return around 42 c/l, with stronger SMP and whey powder prices, firm butter and cheese prices, and slightly easier WMP prices”.