Glanbia will pay its suppliers a base milk price of 44.62c/l, excluding VAT, for March supplies of milk.

This is an increase of almost 2c/l on February supplies when it topped the Irish Farmers Journal milk league at 42.73c/l excluding VAT at 3.3% protein and 3.6% fat.

The sustainability bonus of 0.5c/l is included in this.

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Glanbia Co-op chair John Murphy said: “Dairy market prices are now at unprecedented highs, with global milk flows likely to be weaker in the first half of this year."

He added that they are in "unchartered territory" as rising costs and tight supplies of key farm inputs such as feed and fertiliser contribute to the current strength in dairy prices on global markets.

"However, we note that the current strong inflationary period may impact on consumer demand.

"The board will continue to closely monitor developments," he concluded.

Stability fund

From April onwards, Glanbia will gradually create a stability fund to help protect against any sudden change in market dynamics.

"As a board, we are acutely aware of the increased level of risk in this inflationary environment and we want to ensure that we have adequate provision to protect both suppliers and our farmer-owned business for the future," Murphy said.

Fixed Milk Price Scheme

Murphy reminded milk suppliers that phase 18 of the Glanbia Fixed Milk Price Scheme is currently open for applications.

"This three-year scheme sets a base milk price of 42c/l, 40c/l and 40c/l for 2022, 2023 and 2024, plus constituents and any applicable bonus payments.

"There is also a new feed price adjuster to help protect against input cost volatility," he added.