IFA criticises co-ops on grain prices

IT is time the co-ops started working for their members and began paying the true market value of grain, the Irish Farmers Association has warned.

IFA Grain Committee chairman Colum McDonnell said it is increasingly evident that co-op management is keeping board members in the dark regarding market reality and is using the board to rubber stamp decisions based on erroneous information.

“Both board and co-op members supplying grain are being hoodwinked. It is clear that Glanbia and Dairygold, through the back door, are now trying to recoup a drying and handling margin of over €50 per tonne from grain based on current market values,” he said

Mr McDonnell said farmers who are not happy with the price they are receiving should retain ownership of the grain and do a deal on drying and storage, play the market and maximise their returns.

Mr McDonnell said Dairygold’s offer for green barley of €183/t and for wheat of €200/t (at 20% moisture, excluding VAT) is now €60/t on average below the current market value of dried grain (barley €245, wheat €260/t) and cannot be justified.

It represents a further sinister move by the co-ops in particular to extract unjustifiable margins from grain farmers he said, claiming that the worst price for grain in the country is now being paid by the larger farmer owned co-ops.