Future takes shape for milk suppliers to Glanbia plc
More than half of all 5,181 Glanbia milk suppliers responded to a major survey carried out to assess dairy farmers’ responses to the Mid Term Review of the CAP, particularly the move to the single farm payment.
Almost 2,000 said they want to stay in milk, and Glanbia Group Managing Director, John Moloney said they are committed to sourcing whatever labour supports are required, and to addressing the need for financial planning on dairy farms, after more than 1,000 of the suppliers surveyed admitted to not knowing their milk production costs.
Availability of labour was a stumbling block for 30% of survey respondents.
As a means of up-scaling quickly and addressing the labour issue, 50% of Glanbia suppliers say that they would possibly look to an altered partnership model to enable them to achieve their farming expansion goals.
Only 25% of suppliers who took part in the survey expressed uncertainty about their future.
John Moloney said while the Group was encouraged by the high response rate, and that so many committed, commercial dairy farmers saw a future in farming, he pointed out they have to increase production by, on average, 52% over the next three years, and this is not currently feasible without significant changes to quota re-structuring schemes.
Mr Moloney said, “The main issue to have emerged from the survey is a concern on the cost and availability of milk quota.”
He revealed the Nitrates Directive was also identified as a serious impediment to farm development, and said the need to relax milk production partnership rules was also highlighted.
Glanbia has already met Agriculture and Food Minister Mary Coughlan, and proposed a quota restructuring system which allows 70% of a retiring farmer’s quota to be sold through an exchange.
Glanbia, which has the country’s biggest milk supply, wants the remaining 30% traded through re-structuring, with the price reducing over three years, from 0.75c in 2005 to 0.25c in 2007.
