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.