Glanbia Co-op will pay its milk suppliers a total of 52.08 cent per litre (cpl) (including VAT) for May milk supplies at 3.6% butterfat and 3.3% protein. This is an increase of 2 cpl on the April milk price.
The price consists of the following:
· The Glanbia base milk price for May is 46.58 cpl (including VAT);
· The Board has decided to increase the Agri-Input Support Payment by 2 cpl to 5 cpl on all milk supplied in May;
· A Sustainability Action Payment of 0.5 cpl (including VAT) is being paid monthly on all milk supplied in 2022 to recognise specific sustainability actions being undertaken on farm.
The base price, Sustainability Action Payment and Agri-Input Support Payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.
The Glanbia total price for May creamery milk, based on LTO constituents of 4.2% butterfat and 3.4% protein, is 56.50 cpl (including VAT). This includes the Sustainability Action Payment and Agri-Input Support Payment.
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 5 cpl for this month. It is not currently envisaged that the Agri-Input Support Payment will increase beyond this level.
“The Agri-Input Support Payment will be paid on all milk supplied in May and is expected to continue for the coming months.
“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, with the June milk payment in July.
Commencing next month, approximately 50% of the payment due to milk suppliers will be paid early (on the 9th of the month). Once milk price for the month is set, the remaining balance due to milk suppliers will be paid by the 25th of the month.
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.
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