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 Co-op will also pay its Members a bonus of 0.4 cpl (including VAT) as an additional support payment.

The company said the actual average price paid by Glanbia for October creamery milk, based on delivered constituents, will be approximately 41 cpl.

Making the latest milk price announcement Glanbia Ireland Chairman John Murphy said: “In the global marketplace, overall prices have remained generally steady. Food service demand in many regions continues to be impacted by Covid-19 restrictions. The impact on dairy markets will continue to be monitored closely over the coming months.”

It comes as the Chairperson of ICMSA’s Dairy Committee said that the strength of the PPI index and other market indicators over the last number of months has confirmed his belief that price for the remainder of the year should remain in a positive position.

Ger Quain cited the offering of a Fixed Milk Price Scheme from Carbery at 33cpl per litre for the next three years as a major statement in terms of market confidence and he said the scheme shows that companies are willing to commit to improved FMP contracts to secure product even in a post Brexit world and with all the current uncertainty around Covid 19.

Mr. Quain also noted that three out of the last four GDT Auctions have been positive and according to the European Milk Market Observatory, EU-27 average prices of dairy products improved in the last 4 weeks for SMP by +1.4%, to €217/100kg but decreased for butter by -1.4% to €345/100kg, WMP by -0.3% to €272/100 kg and whey powder was stable at €72/100 kg while EU cheese prices have increased for cheddar by +2.3% to €305/100 kg.

“Dutch dairy quotations for the key indicator butter/SMP mix have seen an upward trend – albeit at a slow pace – since the start of September. The WMP price mix has remained steady since July with relatively little movement up or down in that time.

“Demand for dairy products is steady across Europe but has seen a marked increase in Asia in 2020 which is probably absorbing the extra supply of milk across the globe.

” This all leads to a stable-but-positive outlook for the remainder of the year meaning that Processors and Co-ops must be looking at Spring 2021 to make sure that prices can start off the new year in a positive note”, said Mr. Quain.

The ICMSA Dairy Chairperson concluded by saying that based on current market indicators, the minimum price that all Co-ops should be paying for October milk is 32cpl.