Glanbia Ireland will pay its milk suppliers 35 cent per litre (cpl) including VAT for August manufacturing milk supplies.
Glanbia Ireland has also announced that it will pay its milk suppliers a 1cpl bonus on all milk supplied in January to June of 2017.
Glanbia Ireland has increased its base price for August by 1cpl to 35cpl including VAT for manufacturing milk at 3.6 per cent butterfat and 3.3 per cent protein.
Glanbia Ireland chairman Henry Corbally said: “While the short term outlook remains positive, we note that the current high prices are leading to higher production in key regions and may affect demand when fully passed through the supply chain.
“Exchange rates, particularly the weakening dollar, may also have an impact on returns in the medium term.
“The board will continue to monitor market developments on a monthly basis.”
The board also agreed to pay a 1cpl, including VAT, bonus on all milk supplied in January to June of 2017.
This bonus on all liquid and manufacturing milk supplies will be included in this month’s milk payment.
Milk volumes allocated to Glanbia’s Fixed Milk Price Schemes will also benefit from the flat 1cpl bonus payment.
“As a business majority owned by our farmers, we are always committed to returning the highest possible milk price to our suppliers.
“We are pleased that the business is in a position to make this very significant payment to our farmers for all milk supplied in the first half of this year,” said Mr Corbally.