IFA: Glanbia price cuts ‘an abuse’

GLANBIA’s decision to cut its milk price by 1.5c/l in May, and by another 1.5c/l in June, was described by the IFA yesterday as an abuse of the group’s position as the largest milk purchaser and an unacceptable pre-judgement of markets at a time when trends are actually positive.

However, Glanbia’s newly-elected chairman Liam Herlihy said earlier the group had absorbed much of the impact of falling dairy markets since the backend of last year.

Unfortunately dairy market returns have continued to decline as a result of weaker demand, product substitution and adverse currency movement.

“While markets are volatile at the moment, we are seeing evidence of prices stabilising and have factored some potential uplift in prices into its decision,” he said

IFA dairy committee chairman Richard Kennedy said Glanbia’s decision was in stark contrast with the last week’s move by Carbery Milk Products, who held milk prices for the rest of the year after April and May cuts totalling 6c/l.

He said suppliers were rightly furious at the Glanbia move, and urged board members to urgently rescind at least the June cut.

Irish Creamery Milk Suppliers Association deputy president John O’Leary said Glanbia is the very same co-op which is pushing for substantial increases in milk quotas but yet cannot pay a good price for their existing milk pool.