Tipperary farming: June milk increase 'the least that could be expected'
The milk price increases of 1cpl and 1.48cpl respectively implemented by Lakeland and Glanbia meant farmers would receive at least 30cpl for their June supplies (30cpl and 30.1cpl, including VAT, respectively), according to IFA national dairy chairman Tom Phelan
This increase, he said, was the minimum farmers needed for their June milk in what was a very challenging year of volatile markets and rising costs.
He urged all other co-ops to follow the Lakeland and Glanbia example.
Glanbia announced last week that it would pay its member milk suppliers 30.10 cpl per, including VAT, for June creamery milk supplies at 3.6% butterfat and 3.3% protein.
Glanbia Ireland (GI) will pay a base milk price for June of 29.68cpl, including VAT, for creamery milk at 3.6% fat and 3.3% protein. This is an increase of 1.48cpl from the total GI payment for May supplies, which included a 0.20 cpl weather-related payment.
The GI base price has increased from 28cpl in May to 29.68cpl for June, an increase of 1.68 cpl.
Farmer members will receive a 0.42cpl, including VAT, payment from Glanbia Co-op on all milk supplied this month as their Share of GI Profit.
The Glanbia Ireland base price and the Share of GI Profit payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.
The actual average price paid by Glanbia for June creamery milk, based on delivered constituents, will be 33.21cpl.
“Dairy markets have strengthened in recent weeks, helped by the tentative re-opening of some food service outlets and Government interventions. However, given the weak economic data and high rates of coronavirus in many key importing regions, the short and medium term market direction remains uncertain,” said Glanbia chairman Martin Keane.
Mr Keane highlighted the importance of dairy farming to the Irish economy at this challenging time.
“As the largest milk supply month of the year, our June milk payment will deliver over €120m to rural communities," he said.