Glanbia Co-op increases milk payment from 2 cpl to 52.08 cpl for May

Glanbia Co-op will pay its milk suppliers a total of 52.08 cents per liter (cpl) (including VAT) for May milk supplies at 3.6% butterfat and 3.3% protein . This is an increase of 2 cpl compared to the April milk price.

The price consists of the following elements:

· The basic price of Glanbia milk for the month of May is 46.58 cpl (VAT included);

The Commission has decided to increase the agricultural input support payment from 2 cpl to 5 cpl on all milk supplied in May;

A sustainability action payment of 0.5 cpl (VAT included) is paid monthly on all milk supplied in 2022 to recognize specific sustainability actions taken on the farm.

The Base Price, Sustainability Action Payment and Farm Input Support Payment will be adjusted to reflect the actual components of the milk delivered by suppliers.

Glanbia’s total price for May Creamery Milk, based on the LTO constituents of 4.2% fat and 3.4% protein, is 56.50 cpl (VAT included). This includes the Sustainability Action Payment and the Agricultural Input Support Payment.

Glanbia Co-op Chairman John Murphy said: “Dairy markets continue to operate at a strong level, with a balance between the reduction in global milk supply and some inflationary pressures impacting demand from consumers in certain markets.

“In light of the high costs of agricultural inputs, the Commission has decided to increase the agricultural input support payment to 5 cpl for this month. It is not currently envisaged that the agricultural input support payment will increase beyond this level.

“The farm input support payment will be paid on all milk supplied in May and is expected to continue over the coming months.

“The council will continue to monitor the situation on a monthly basis.”

Bi-monthly milk payment

As announced in April, a six-month pilot change to the milk payment schedule will begin next month, with milk payment from June to July.

Starting next month, approximately 50% of the payment due to milk suppliers will be prepaid (on the 9th of the month). Once the price of milk for the month has been set, the balance due to milk suppliers will be paid no later than the 25th of the month.

Milk suppliers are encouraged to verify 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 making certain adjustments to their banking facilities to align with the new timing.

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Elaine R. Knight