The board of Lakeland Dairies met on Monday and has increased the milk price for November. Glanbia and Carbery have both followed suit in the afternoon.
Both processors have increased their base milk price for November by 2c/litre. This brings Lakeland’s milk price for November to 27.75c/l (excluding VAT) based on protein of 3.3% and fat of 3.6%.
Lakeland increased its October price by 1c/l and has now increased the milk price every month for the past five months.
Lakeland is also running a 3c/l out-of-season bonus for its suppliers.
Glanbia Ingredients Ireland has increased its base milk price to 27.5c/l (excluding VAT) for manufacturing milk at 3.6% fat and 3.3% protein. The board of Glanbia Co-op has decided to pay its members a support payment of 1c/l for November manufacturing and liquid milk supplies.
This brings the November milk price for Glanbia Co-op members to 28.45c/l (excluding VAT).
“Recent milk supply reductions in key production regions have led to a swift and very welcome recovery in dairy market prices,” Glanbia chair Henry Corbally (pictured) said in a statement. “However, a number of uncertainties remain in the global environment. The board will continue to monitor markets on a monthly basis.”
The Carbery group in west Cork has also increased its milk price for November following a meeting on Monday. Carbery went up by 1c/l for November milk.
The four co-ops withing the Carbery group – Drinagh, Barryroe, Lisavaird and Bandon – will decide in the coming days if they will pass on the 1c/l increase to its respective suppliers.
IFA dairy chair Sean O’Leary described Lakeland and Glanbia’s price increases as a “welcome step towards delivering sustainable milk prices in 2017”. According to him, last week’s dairy forum heard that “the global supply of milk was unlikely to increase significantly within the next 12 months. After two years of negative margins on farms in most milk production regions and significant increases in cow culls, volumes will be very slow to recover and dairy markets and prices should therefore be reasonably buoyant in 2017.”
“It is clear that EU average dairy market returns for the month of November circa 32c/l and the November Ornua PPI increase justify a significant increase this month,” he added, calling on more co-ops to increase November prices.
Last week, Ornua’s Purchase Price Index (PPI) reached a 19-month high. The PPI for November stands at 99.4, which is up from 95.9 in October.
Ornua said the near four-point PPI increase “reflects higher returns in the month across most products”.
Further co-ops will set milk prices for November in the coming days.
Source: Irish Farmers Journal