Irish jealous of milk price FrieslandCampina

Irish dairy processor Glanbia has lowered the milk price for July. The advocates are displeased with the fact that FrieslandCampina's milk price is about 4 cents higher than their farmers receive.

Dairy cooperative Glanbia, which, together with A-ware, new cheese factory built, has lowered the milk price in July by 1 cent to 29,50 euro cents per litre. This includes VAT, based on 3,6% fat and 3,3% protein. Martin Keane, the cooperative's chairman, told the Irish media that this cut is a result of the lower butter prices.

Irish milk price too low
The reduction of the country's largest processor is met with incomprehension by Irish dairy farmers. This is because milk prices in June were already about 2 cents below the European average, says Gerald Quain, the chairman of the Irish dairy advocacy group 'ICMSA Dairy Committee'.

Quain says that this negative difference means Irish dairy farmers are losing about €6.000 on an annual basis, based on an annual supply of 300.000 liters of milk. To reinforce his words, he points to FrieslandCampina's milk price; it was about €4 cents above Ireland's level in June. This while FrieslandCampina operates in the same markets as Glanbia.  

With the lowering of Glanbia, this difference has been stretched even further. The representative calls on Glanbia and other Irish milk processors to better reflect their payout prices against the competition on the European mainland.

Not different from yesterday 
If we look at the yield prices, then this chairman has a point. However, the difference is not from yesterday, according to the LTO milk price comparison. Since 2012, the milk price of Glanbia has exceeded the price of FrieslandCampina only on rare occasions. Over the years, the average difference is slightly less than €0,03 per kilo.

Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.