FDBusiness.com

Glanbia Ireland will pay a base milk price for March of 29 cpl (including VAT) for creamery milk at 3.6% fat and 3.3% protein. This is a reduction of 2 cpl from the February base price.

Farmer Members will also receive a 0.42 cpl (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 Glanbia Co-op Share of GI Profit payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.

Glanbia announced that this “regrettable milk price reduction” is required due to the negative impact of the Coronavirus (Covid-19) pandemic on dairy markets. Restrictions brought in to help contain Covid-19 have decimated foodservice demand in multiple countries and severely challenged the dairy supply chain.

While some dairy market sectors including domestic retail remain stable, returns for the overall basket of dairy products is adversely affected. Customers directly or indirectly serving the leisure and foodservice sectors have cut order volumes until they have visibility on the re-opening of their markets.

Glanbia Chairman Martin Keane said: “The Coronavirus outbreak has caused significant challenges for all our communities and our businesses. We regret that a farm gate milk price reduction is required, but it is essential given the sharp drop in average returns from the market for our basket of products.

“The restrictions imposed during the global pandemic have particularly impacted on foodservice demand worldwide and are expected to continue to affect dairy supply chains in the weeks ahead. The Board will continue to monitor the situation on an ongoing basis but significant Government and EU action will be required to bring stability to dairy markets and to protect our milk suppliers.

“As a business we are continuing to take all appropriate measures to deal with the challenge. We are deeply appreciative of the great commitment of our farmer suppliers, our team of hauliers and our dedicated workforce who are all ensuring that the national food chain is operational at this time.”