€14m Glanbia milk loss ‘poor performance’
He said options for recovering the losses were a recovery in global markets (not expected until next year), a further cut in milk costs (very difficult from already low levels), or a combination of these, along with a rationalisation of the entire Irish dairying sector, which could release further cost savings. It was also noted that Glanbia has to tackle a pension deficit of €164m (up from €114m a year earlier) in the coming years through measures, such as special contributions.
Meanwhile, Glanbia managing director John Moloney has again indicated the group would give active consideration to being part of a consolidation process. In a newsletter to farmers, Glanbia says dairy commodity prices will stay weak for the rest of 2009.
