IFA claims Glanbia move to ease financial pain of farmers insufficient

GLANBIA has moved to ease the pain of its milk suppliers over reduced prices but the Irish Farmers Association said it was disappointed the food group could not have done more.

Glanbia said it had reduced manufacturing milk price significantly and this raw material input cost remains at a level above which this business unit can break even.

However, in the belief that dairy markets appear to have reached the bottom and with some recovery in markets anticipated in late-2009, it decided to sustain current manufacturing milk prices.

“Despite resulting in a significant forecast loss at Food Ingredients Ireland, the board believes this is an important step, in the current unprecedented circumstances, to help maintain its Irish dairy supply and trading base.

“In addition, the board has committed to make available a fund of €8 million to manufacturing milk suppliers, which can be drawn down by way of loan in 2009 and repaid over a three-year period,” it said.

Group managing director John Moloney said: “In the shorter term, there are very significant issues facing farming and these are having a major impact on our Food Ingredients Ireland and Agribusiness units, resulting in a downward revision of adjusted earnings per share to a range of 30 to 32 cents for 2009.”

IFA president Padraig Walshe said it was disappointing Glanbia could not do more to alleviate the extremely difficult income situation of its suppliers. He said the Irish dairy industry must cut costs, join forces to grow scale, eliminate duplication and exploit market opportunities.