Glanbia say market is 6 cent off milk prices
Glanbia chairman Tom Corcoran noted there had been no movement in supports from Europe to alleviate the current market difficulties, despite repeated lobbying at Brussels.
He said Glanbia spent more than 10 million in 2002 supporting milk prices. However, as the imbalance between milk price and market returns is now more than 1.3 cent per litre or 6 cent per gallon, this level of support is not sustainable.
The new Glanbia milk price is 27.22 cent per litre (123.75 cent per gallon) inclusive of VAT and the 0.28 cent per litre (1ppg) investment in the Glanbia Co-operative Society revolving share plan.
Milk suppliers can now opt to receive their payment for milk entirely in cash, rather than invest 0.28 cent per litre in the co-op revolving share plan. Farmers who exercise this option, by returning a notification form, which will be distributed to all milk suppliers shortly, will suffer a milk price reduction of 0.27 cent per litre. Meanwhile, the revolving share plan continues.
Group managing director John Moloney said international dairy markets remain weak, compounded by the decline in the value of the US dollar and sterling. Consequently, all major product categories continue to trade at or below intervention equivalents. “We will monitor market conditions closely and the Board will review the position on a monthly basis,” he said.
ICMSA deputy president and Dairy Committee chairperson Jackie Cahill said the Glanbia milk price cut would cost a farmer with 40,000 gallons about €1,000 in a year. He called on all co-ops who have cut milk prices to immediately reverse their decision so that farmers can earn a decent return from peak milk production.
IFA National Dairy Committee Chairman Michael Murphy welcomed the decisions by Lakeland, Kerry, Dairygold, Wexford and Town of Monaghan to hold March milk prices. He said suppliers to Glanbia, Dairygold, the West Cork co-ops and North Cork Co-op feel badly let down.
He said price cuts of 2.5 to 4.2c/l price cuts in the last 18 months, and cost inflation, had together knocked €10,000 to €15,000 off average dairy farm incomes.
“Dairy farmers can take no further cuts, and it is high time our industry stopped substituting systematic price cuts for a proper business strategy,” he said.
