Glanbia suppliers want cut reversed

GLANBIA milk suppliers want the company to pay the top milk price in the country and reverse a 1.5c a litre price cut.

Close to 700 farmers attended a meeting organised by IFA in Kilkenny, at which Glanbia chairman Liam Herlihy and six board members were in attendance, and the Glanbia chairman gave a commitment to “bridge the gap” in prices between Glanbia and the better payers, according to an IFA statement.

IFA president Padraig Walshe asked suppliers to give the Glanbia board two weeks to come up with a solution to both issues — and the meeting reluctantly agreed.

“Ten years ago, when Glanbia was formed, a commitment was made to pay almost 1c/l over the average of the KPMG audit for three years to buy farmers’ support. After the first three years, Glanbia have used their dominant position with one third of the national milk pool, and a captive supply, to pay a milk price as low as they could get away with,” Mr Walshe said.

There was a strong demand from suppliers that Glanbia pay the top milk price in the country, without recourse to topping up a bad price by the co-op.

IFA Dairy Committee chairman Richard Kennedy said: “An average Dairygold supplier will receive €600 more than a Glanbia supplier in his June milk cheque alone.

“There is an absolute onus on Glanbia board members to deliver on the refund of their unjustified 1.5c/l June price cut.”