Glanbia has become the second milk co-op to set its price for May 2022 supplies.
It will pay milk suppliers a total of 52.08c/L (including VAT) for May milk supplies at 3.6% butterfat and 3.3% protein.
This is an increase of 2c/L on the April milk price.
The price consists of the following:
- The Glanbia base milk price for May is 46.58c/L (including VAT);
- The board has decided to increase the agri-input support payment by 2-5c/L on all milk supplied in May;
- A sustainability action payment of 0.5c/L (including VAT) is being paid monthly on all milk supplied in 2022 to recognise specific sustainability actions being undertaken on-farm.
The processor will adjust the base price, sustainability action payment and agri-input support payment to reflect the actual constituents of milk that suppliers deliver.
The Glanbia total price for May creamery milk, based on LTO constituents of 4.2% butterfat and 3.4% protein, is 56.50c/L (including VAT). This includes the sustainability action payment and agri-input support payment.
In a statement, Glanbia Co-op chairman, John Murphy, said:
“Dairy markets continue to perform at a high level, with a balance between reduced global milk supply and some inflationary pressures impacting on consumer demand in certain markets.”
“In light of the ongoing high farm input costs, the board has decided to increase the Agri-Input Support payment to 5c/L for this month.”
“It is not currently envisaged that the agri-input support payment will increase beyond this level.”
The processor will pay the agri-input support payment on all milk supplied in May and it expects this to continue for the coming months.
He confirmed that the board will continue to monitor the situation on a monthly basis.
Twice-monthly milk payments
As announced in April, a six-month pilot change to the timing of milk payments will begin next month. Farmers will receive their June milk payment in July.
The processor will pay approximately 50% of the payment due to milk suppliers (on the 9th of the month).
Once it sets its milk price, it will pay the remaining balance to milk suppliers by the 25th of the month.
A spokesperson said: “Milk suppliers are advised to check their banking arrangements to ensure a smooth transition to the new process.”
“Some milk suppliers may need to consider changing the timing of some of their deductions or make some adjustments to their banking facilities in order to align with the new schedule,” the spokesperson concluded.