Farmers call on Glanbia to retain current milk price to March at least
By Joe Dermody
Friday, February 03, 2012
Dairy farmers want Glanbia to retain its current milk price until at least the end of March, according to IFA national dairy chairman Kevin Kiersey.
Last July, Glanbia raised its milk price by 0.95c/l plus VAT and promised to retain that increase until the end of December. The IFA now wants the co-op to extend that promise until March in line with a similar promise made by Dairygold to its suppliers.
Mr Kiersey said: "There are many more reasons to be positive about the dairy outlook for 2012 than there are to be negative... despite the global economic challenges, demand has thus far kept up with supplies, there has been no major stock build up, and commodity prices, though easier, remain at historically strong levels."
Mr Kiersey said that the outlook for 2012 remains reasonably good, while accepting that dairy market returns have come down from their 2011 peak.
He added that a 0.95c/l rollover gesture by Glanbia would generate considerable goodwill among farmers.
Mr Kiersey said: "Signals from the first January Fonterra auction were positive, with overall weighted prices for products to be traded all the way to September 2012 up 1.5%," Mr Kiersey said.
"I am clear that all co-ops can at the very least hold milk prices for spring before taking a longer view on milk price trends. Indeed, Dairygold have already indicated they would hold their milk price at least until March.
"In this context, I urge Glanbia board members, who will be meeting in coming days, to rollover the 0.95c/l + VAT they had decided last July would last till 31st December.
"Glanbia is clearly in as good a position as Dairygold to sustain their price at December 2011 level at the very least for the spring," he added.
a d v e r t i s e m e n t
This appeared in the printed version of the Irish Examiner Friday, February 03, 2012
