Call for payout to support milk price
ICMSA president Jackie Cahill said he had written to IDB chairman Michael Cronin suggesting that the board actively consider the matter. An €18 million fund could boost milk price by the equivalent of 3 cent per gallon.
Mr Cahill said he is aware that this will require a rearrangement of funding by the IDB, but is confident that this can be done without in any way weakening its capacity.
“This proposal is not and should not be interpreted as supporting any move to asset strip IDB. In fact, it could be seen as a positive move by IDB towards dairy farmers and give full expression in a material way to the concept of a co-op,” he said.
Mr Cahill said farmers have invested wisely over the years in the IDB. Given the financial pressure on dairy farmers at present, the board should consider making them a once-off payment to support milk price, he added.
The ICMSA leader said dairy farmers are facing into one of the most severe price-cost squeezes anyone can recall. He demanded that dairy co-op boards hold their line on milk price.
“While no one doubted that most co-ops have secured cost efficiencies in the recent past, it is equally self-evident that further costs and savings can and must be achieved,” he said.
Pointing out that other bodies have a role and a responsibility to hold the net milk price, Mr Cahill said the ICMSA is looking for a two-year suspension of the disease and inspection levies, which together amount to about 1c per gallon of milk.
