Weaker markets will cushion milk price cut by Glanbia in short term
He said that the 2c/l milk price cut announced by Glanbia yesterday was offset by an equivalent 2c/l from the GIIL Milk Price Stability Fund and would leave farmers’ pockets unaffected for their August milk supplies.
August milk production had been very strong, and an unchanged payment to farmers at a time of weaker markets would make an important cash flow contribution.
However, he said that Glanbia farmers would be very mindful of the fact that their base milk price is now 2c/l down at 31.4c/l plus Vat (33c/l including Vat), and that the contribution from the Milk Price Stability Fund originates in the accumulated 2013 profits, which could have been, but were not passed back to farmers in real time last year.
Mr O’Leary renewed his call on all co-ops to remain resolutein the face of the current temporary market uncertainty.
