Glanbia’s ‘derisory offer’ threatens future of tillage farming, claims IFA

GLANBIA’S price offer to growers this week threatens the future of tillage farming in Ireland according to the IFA.

However, the charge was rejected by the company. Glanbia agribusiness chief executive Colm Eustace said: “I appreciate how difficult this harvest has been and continues to be for growers. Overall there is an extra 53m tonnes of grain in Europe after this year’s harvest, which is regrettably having a huge impact on the market.”

IFA president Padraig Walshe said Glanbia’s price offer threatens the future of tillage farming.

“Once again, Glanbia has put up a price when the market is at its lowest and leaves growers facing considerable losses.

“The company has secured a margin on their inputs, credit charges and grain business. At the same time, growers will not take a gamble on committing significant capital investment at such a poor price,” he said.

Speaking at an IFA national grain protest at Glanbia headquarters in Kilkenny yesterday, Mr Walshe said that Glanbia’s offer of €123/t for green barley and €127/t for green wheat is derisory.

“Glanbia grain suppliers collectively have spent close on €30 million on fertiliser, seed and chemicals in growing crops for Glanbia. However, Glanbia’s price offer for grain delivered across the weighbridge amounts to around €27 million when moisture adjustments are taken into consideration, representing a deficit of €3m. With production costs running close to €140 per tonne growers will take a financial hit of up to €25 for every tonne produced while Glanbia will secure their margin,” he added.

IFA national grain committee chairman Colum McDonnell said: “Glanbia’s insatiable appetite for margin as a plc has been to the detriment of growers... Their stranglehold over the grain industry has driven down the price and undermined the viability of crop production.”