Glanbia Ireland has confirmed a 3c/l drop in its February base milk price. It will pay its milk suppliers 30.36 c/l excluding VAT for February manufacturing milk supplied at 3.6% butterfat and 3.3% protein.

The Glanbia February milk payment will also include a payment of 1c/l (0.95c/l excluding VAT) to reflect the particularly challenging weather conditions experienced on Glanbia farms.

“As we have clearly signaled to our farmers in recent months, current market returns are significantly below our farmgate milk price," Glanbia Ireland chair Henry Corbally said.

The board is very conscious of the tough spring being experienced by our farmers

"However, the board is very conscious of the tough spring being experienced by our farmers," he added. This has led to the special support payment of 1c/l, which will be paid across all February milk volumes, including those in fixed milk price schemes.

Milk constituents above the reference solids of 3.6% butterfat and 3.3% protein will be paid on the basis of the differentials applicable to a milk price of 31.30c/l excluding VAT; that is, after application of the weather support payment.

Seasonality bonus

Those suppliers who qualify for the seasonality bonus (having supplied more than 3% of their milk in February and less than 15% in June) will receive the associated 4.03c/l top-up excluding VAT on February supplies.

Reaction

While acknowledging challenging market returns, IFA dairy chairman Tom Phelan described Glanbia's milk price cut as "massive". “Farmers will be all the more disappointed as February milk volumes will be low because of challenging production conditions, and supporting farmers in this difficult period would not have been overly onerous on Glanbia," he said. “It is a shame that the goodwill created by Glanbia’s hard work and quick action during the snow storm will now be all but wiped out in farmers’ minds."

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