Glanbia announce rise in milk prices
Kilkenny based Glanbia Ireland will pay its milk suppliers 34 cent per litre including VAT for July manufacturing milk supplies.
This is an increase in Glanbia Ireland’s base price for July of 1 cpl to 34 cpl including VAT for manufacturing milk at 3.6% butterfat and 3.3% protein.
Glanbia Chairman, Henry Corbally, said: “We are pleased to be able to reflect continuing positive dairy market performance particularly with strong demand for butter and good demand for cheese.
“However certain parts of the dairy market continue to be challenging, especially powders, and the Glanbia Ireland Board will continue to monitor market developments on a monthly basis.”
This week the company announced that it had a total revenue of over €2 billion for the first six months of this year up almost 10% on the same period in 2016 once currency changes are taken into account.
The milk price increase comes after just last month it was revealed that average dairy farm incomes are forecast to increase to between €75,000 and €80,000 in 2017, which would make it a record year for dairy farm income.
Teagasc published its mid-year commentary on the economic performance of Irish agriculture in 2017.
It forecasts very strong growth in dairy incomes, with broadly stable incomes forecast for drystock and tillage systems.
It reveals that Irish farm milk prices have rebounded strongly over the last 12 months.
Having been at their lowest level since 2009, milk prices are now back to 33 cent per litre and are providing the impetus for a continuing increase in milk production, which could be up by 7% nationally in 2017 relative to last year.