Glanbia December milk price of 30 cpl

Glanbia milk suppliers will receive a base price of 30 cent per litre (cpl) for December manufacturing milk supplies.

Glanbia will pay its suppliers 30 cent per litre (cpl) including VAT for December manufacturing milk supplies.

Glanbia Ingredients Ireland (GII) has increased its base price for December by 1 cpl to 30 cpl including VAT for manufacturing milk at 3.6% fat and 3.3% protein.

In light of this decision, there will be no Glanbia Co-operative Society support payment to Members this month.

Glanbia Chairman Henry Corbally said that the strong recovery in Glanbia’s milk price in the past six months has resulted in a positive conclusion to a very challenging year for the dairy sector.

Fixed Milk Price Schemes

Henry Corbally said that GII milk suppliers will shortly receive application forms for two Fixed Milk Price Schemes. Both Schemes commence on 1 January 2017 are open to applications from all GII suppliers with a valid Milk Supply Agreement (MSA).

The key features of the Schemes are as follows:

Phase 8 Scheme: Three-year Fixed Milk Price/Margin Scheme:

• Three-year Fixed Milk Price/Margin Scheme running from 1 January 2017 to 31 December 2019.
• This scheme is based on a reference milk price of 30.10 cent per litre (cpl) (including VAT) for milk at 3.6% butterfat and 3.3% protein.
• This reference milk price will be adjusted each year in line with movement in farm input costs, using 2016 as the base year.
• The forecast inflation for 2017 is 0.65 cpl (including VAT), generating an inflation adjusted base milk price of 30.75cpl (including VAT) for 2017.
• A Market Adjuster mechanism will apply when the open market price moves above 33.73 cpl (including VAT) and below 27.40 cpl (including VAT). There will be an adjustment of 0.5 cpl (including VAT) for each 1.0 cpl movement in price outside this range.

Phase 9 Scheme: One-year Fixed Milk Price Scheme – Key Features:

• One-year Scheme running from 1 January to 31 December 2017.
• The Scheme will pay a fixed milk price of 31.75 cpl (including VAT) for milk at 3.6% butterfat and 3.3% protein.
• This Scheme does not feature any adjustments for movements in market prices or farm input costs.
• Participants in this one-year Fixed Milk Price Scheme (Phase 9) will be given priority access to a future Fixed Milk Price Scheme offered by GII for 100% of the volume that they are allocated under this Scheme.

Any support payment made by Glanbia Co-operative Society to its Members over the course of both Schemes will be paid to Scheme participants on top of the prevailing Fixed Milk price.

First Published 13 January 2017