Kilkenny-based Glanbia will pay local farmers 28.42 cents per liter for the milk supply in April.
Glanbia Ireland (GI) will pay a base milk price for April of 28 cpl (VAT included) for 3.6% fat and 3.3% protein creamer milk. This is a reduction of 1 cpl from the March base price.
Kilkenny members will also receive a payment of 0.42 cpl (including VAT) from Glanbia Co-op on all milk supplied this month as a “share of IG profit”.
The base price of Glanbia Ireland and the payment of Glanbia Co-op’s share in GI profits will be adjusted to reflect the actual constituents of the milk delivered by the suppliers.
The actual average price paid by Glanbia for April creamery milk, based on the components delivered, will be 31.45 cpl, including payment of GI’s profit share.
This drop in the price of base milk is due to the negative impact of the Coronavirus (Covid-19) pandemic on the returns of the dairy market.
Glanbia President Martin Keane said: “Dairy markets continue to be affected by Covid-19 and the current yields of our basket of products unfortunately require an adjustment in the price of milk. The pace of the recovery in consumer activity, as well as trends in global milk supply, will be key factors driving the dairy market movements in the coming months. The Council will continue to monitor the situation on an ongoing basis.
The Board of Directors of Glanbia Co-op has approved the distribution of equity interest (“special dividend”) of 13.5 cents per share to all members. This distribution of interest in shares of 5 million euros was approved at a special general meeting (AGS) of Glanbia Co-op held on May 29, 2019 and will be paid to all members registered in the share register at the date of this meeting.
The company also announced that all of Glanbia Ireland’s milk processing facilities continue to operate at their planned capacity levels for this time of year, despite the Covid-19 crisis.
“As a company, we continue to take all appropriate measures to face the challenge of the coronavirus,” said Martin Keane. “We deeply appreciate the great commitment of our supplier farmers, our team of transporters and our dedicated workforce who all ensure that the record volumes of milk are currently very well managed by all links in the chain. ‘supply’, he concluded.