Farmers to protest at milk price cuts

FARMERS, angry at the decisions taken by Glanbia and Lakeland Dairies to cut the milk price, are to hold protest and strategy meetings on Tuesday.

Glanbia’s board decided on a reduction of 3 cent per gallon for April and a further 3c per gallon for May, while Lakeland Dairies opted for a cut of 6c per gallon for March.

Warning the cuts will have a devastating impact on farm incomes, Irish Farmers’ Association president Padraig Walshe said the reality is that the average dairy farmer is earning half the income of a worker in a co-op, and that is not sustainable.

“The average farmer with a 50-cow herd is earning only two-thirds the average industrial wage.

“Over the last five years, farmers have already lost €9,000 in annual income due to steep 4c/litre price cuts. Production costs are rising and eating further into farmers’ margins.”

Mr Walshe said farmers had financed the creation of Glanbia several years ago in the belief it would be a price leader, but the country’s largest milk processor is now leading the price down.

Calling for a radical overhaul of Lakeland’s processing efficiency that was, he said, clearly uncompetitive, Mr Walshe announced there will be a protest meeting in Cavan on Tuesday night about that co-op’s price cut.

Irish Creamery Milk Suppliers Association (ICMSA) president Jackie Cahill, meanwhile, has called an emergency meeting of the association for the Montague Hotel, County Laois, on Tuesday to decide on its next move.

He said farmer suppliers, who own Glanbia, will see their price cut and incomes fall by up to 16% annually.

Mr Cahill said the ICMSA is urging Glanbia and Lakeland to reverse cuts.

Glanbia chairman Michael Walsh said its decision was inevitable given the reduction in EU supports and market returns since October 2005.

Recognising the impact of the decision on suppliers, he said Glanbia will make a total payment for milk in 2006 which is at least equal to the average of the KPMG milk price audit (excluding Glanbia).

Mr Walsh said the implications of the price reduction for the liquid milk sector will be reviewed with suppliers over the coming weeks.

Lakeland Dairies said its price reduction decision arose from the cumulative effects of the Fischler cuts and ongoing reductions in the prices paid to processors by the Irish Dairy Board (IDB).

Energy costs have also increased and this is affecting all processors.