Glanbia to cut price paid to milk suppliers by three cent per litre
The move has been sharply criticised by the Irish Creamery Milk Suppliers Association which described it as “savage and disproportionate.”
However, the food group insisted it had no option due to the continued volatility on global dairy markets and declining market returns, all compounded by the downturn in the global economy.
Glanbia chairman Liam Herlihy said the group fully understands the disappointment and frustration felt at farm level, with suppliers trying to cope with volatile milk markets in the context of rising costs.
“For our part we are trying to minimise the impact of reducing returns through price supports and a reduction in margin coming from Glanbia’s Irish Ingredients business.
“The 1cpl market support from the Plc applies as announced in July together with the 1cpl support from Glanbia Co/Op — which is subject to shareholder approval.
ICMSA president Jackie Cahill said the decision meant Glanbia had cut another €6,000 from the annual income of an average 50,000 gallon supplier at a stroke.
He said the contrast between trade union members complaining about inadequate salary increases and milk producers having several thousand euro cut off their incomes in the blink of an eye was both revealing and infuriating.
Mr Cahill said internal aids and export refunds must be re-introduced and reformed to take account of the present critical situation. And there must be an end to expanding quota and supplying more milk at lower prices into a market in which the price is already sliding.
