Angry suppliers’ baptism of fire for new Dairygold boss
The co-op should first trim their operation by cutting out unprofitable operations and bringing more efficiency to processing before they take the easy option of reducing the milk price, said Gerard Quain, chairman of Limerick ICMSA.
After the farmers’ co-op cut the price paid to farmers for their February milk supplies, Mr Quain said: “It is unacceptable that farmers are the only sector asked to take a cut in income, after a very difficult year for all farmers. We have not heard anything about workers being asked to take a cut in their pay, or the society pleading inability to pay any increase granted under the new national agreement”, he said.
He accused Dairygold of not taking into account the higher returns from their added value products when deciding the price paid to farmers.
Newly appointed Chief Executive Jerry Henchy takes over at the helm of the farmer controlled dairy co-op from Denis Lucey as farmer leaders hit out at the reduction of 2p per gallon (2.5 cent), to a base price of 94p/lb (119.4c), plus VAT.
IFA said it was a retrograde step by the new Chief Executive, which would cost each Dairygold supplier an average of €1,500 annually.
IFA president John Dillon said: “Dairygold suppliers will have to assess the Board’s strategy of passing on costs to farmers while avoiding the hard decisions on taking out costs in the processing sector”.
“It is particularly disappointing that the Dairygold board has taken this decision on the small volume of milk in February, but with the intent of setting a downward trend in prices, contrary to Dairygold’s previous position as a price leader”.
