Glanbia: March 2022 Milk Price
Glanbia has set its March 2022 milk price, becoming the first processor to do so.
Earlier this afternoon, a spokesperson confirmed to That’s Farming that it will pay 47.08c/L (including VAT) for creamery milk supplies at 3.6% butterfat and 3.3% protein.
Therefore, the overall Glanbia price of 47.08c/L for member milk suppliers includes a base milk price for March of 46.58c/L (including VAT).
According to the processor, this is an increase of 5c/L from its February base price of 41.58c/L (including VAT).
The processor is paying a Sustainability Action Payment of 0.5c/L (including VAT) on all farmer’s supplies in 2022 to recognise specific sustainability actions they are undertaking on-farm.
It will adjust the base price and SAP to reflect the actual constituents of milk that suppliers have delivered.
The Glanbia milk price for March creamery milk, based on LTO constituents of 4.2% butterfat and 3.4% protein, is 48.95c/L (including VAT).
Dairy markets and input prices
According to Glanbia co-op chairman, John Murphy, dairy market prices are now at “unprecedented highs”.
He said global milk flows are “likely to be weaker” in the first half of this year.
He noted that “we 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 consumer demand. The board will continue to monitor developments closely.”
Continuing, Murphy said: “As a board, we are acutely aware of the increased level of risk in this inflationary environment.”
“We want to ensure that we have adequate provision to protect both suppliers and our farmer-owned business for the future.”
Consequently, the board has decided that from April onwards, it will gradually create a stability fund to help protect against any sudden change in market dynamics.
Fixed Milk Price Support Scheme.