The IFA has urged Glanbia to pay the 0.5c/l co-op patronage bonus, which offsets much of the Glanbia September price cut, to all milk producers — not just those who have signed a milk supply agreement.
IFA president Eddie Downey said: “While we acknowledge that Glanbia have committed to holding the current price to year end, the extreme cut to 30.5c/l for September milk came as a shock to milk producers. They felt Glanbia were again using their early price setting mechanism to drive down all milk prices to a greater degree than September market returns warranted.”
“IFA recognises that the turbulence of international dairy markets will likely lead to a number of months of poorer returns before markets recover. However, farmers expect their milk purchasers to support them through this difficult time as we face into the post quota era. Glanbia needs to do more to reassure farmers that the GII JV model is fit for purpose and not relying on low producer milk prices to meet its financial commitments.
“Glanbia must also convince farmers that the combination of a viable base milk price added to other elements such as co-op top ups, stability funds and fixed margin contracts, will leave Glanbia suppliers with a strong milk price,” he said.
IFA is meeting the main milk purchasers to discuss pricing in advance of the end of quotas.
n Milk prices fell across Europe in October, according to the European Milk Board farmers’ organisation.
It says Danish farmers are getting 33c-34c per litre but fear it could fall to 25c. In France, the price fell by 10c in three months, to 31c-34c, but a price of 28c-30c was already announced for January.
In Germany, some dairies have already announced they will reduce prices to 32c in November and December, from 35c-37c now. In the Netherlands, prices are at 35c, and 37c-39c in Italy.
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