Glanbia co-op move ‘misguided’
The KPMG Audited Milk Price shows that in 2002 little separated the price paid by Kerry, Glanbia and Dairygold to farmers for their milk.
On a direct comparison with the co-ops, Glanbia paid €26.79c per litre to farmers for milk. That contrasts with €26.76c from Dairygold, €25.61c from Lakeland; €25.6c by Arrabawn and €24.7c for Connacht Gold. Town of Monaghan paid €25.69c per litre over the same period.
Kerry Group at €26.87c was the best of the publicly quoted companies, while the West Cork co-ops, including Bandon, Barryroe, Lisavard and Drinagh, paid higher prices than the rest, ranging from €27.61 in the case of Drinagh to €28.44c by Bandon.
Overall, Glanbia has argued that claims by the FMB lobby that supplies about one-third of the Glanbia milk pool that the Plc has not delivered to farmers does not hold up.
Industry analysts say the campaign is misguided, with one-well placed source saying the mistake FMP made was in trying to buy out the 45.2% stake it does not own of the Plc instead of bidding to take the milk pool only back into co-op hands. That would give the primary processors control of their own raw material. Disgruntled farmers point out that the market value of Glanbia was less than either Avonmore or Waterford before the merger and that going Plc has not delivered much real value to any group of shareholders judged by the current stock market rating.
Fresh Milk Producers chairman Eamonn Bray says his group’s main concern is to get the company back working in the true interests of farmers. FMP wants acquisitions and disposals to cease and the money funnelled back to farmers in the form of better prices.
FMP argues that the co-op model is the way forward.
