Cuts in liquid milk prices not justified,

Ray Ryan,

Liquid Milk Committee chairman Donal Kelleher said price cuts of up to nearly 1.7c/litre (6p/gal) were implemented by Glanbia, Kerry, Arrabawn and Connacht Gold. He said the income of producers in liquid milk dairies, where prices were based on manufacturing milk prices plus a premium, had also been unfairly hit.

While other dairy product markets were experiencing a downturn, retail prices of liquid milk have actually increased steadily over the years.

“The retail price of milk has increased by over 23% since 1989. Yet, our milk price is now less than what we used to get then,” he said.

Mr Kelleher said only 18 months ago, dairies increased producers liquid milk prices for the first time in six years. There was no logic in reversing what was a long overdue move at this point, when market returns do not justify it. IFA president John Dillon, meanwhile, has welcomed decisions by Kerry and Glanbia to hold the July manufacturing milk price, and called on other co-op boards to show the same commitment to milk producers. Fine Gael agriculture spokesman Billy Timmins yesterday called on FarmMinister Joe Walsh to pay the 2002 suckler cow advance in October.