Munster Express Online

A special meeting of Glanbia shareholders isn’t anticipated until the autumn to sanction proposed milk price supports.

After a meeting of the boards of both Glanbia plc and Glanbia Co-operative Society Limited last Friday, the group – facing a revolt among suppliers – approved a number of measures aimed at quelling anger over recent milk cheque cuts.

The company will pay an additional 1 cent per litre plus vat from Food Ingredients Ireland on manufacturing milk supplied from July to end of December 2008

The co-op board is recommending an equivalent 1 cent per litre plus vat from Glanbia Co-operative Society Limited for the same period, subject to shareholder approval. Co-op directors propose “engaging with the representative structure on possibilities for further support beyond 2008 as dairy market volatility is expected to continue”.

Commenting on the decision, Glanbia chairman Liam Herlihy said: “Based on our product mix, the milk price of 30 cent per litre plus vat fully reflects the current market return. However, the boards of both entities do recognise the significant increase cost burden faced by suppliers during the current year.

“Recognising this fact, and also that most other parts of the group are currently performing satisfactorily, the Group has decided to provide some support to milk producers during this time.”

He added that the Glanbia Plc Board will continue to review milk price in light of the evolving markets on a monthly basis.

The Knockanore man added: “We are conscious of the issues facing dairy farmers and will be active in bringing forward proposals for the benefit of all stakeholders.”

IFA national dairy committee chairman Richard Kennedy said Glanbia’s commitment to pay a milk price of 32c/l + VAT from July was welcome, but felt the company’s failure to address the 1.5c/l price cut for June was disappointing.

“While recognising the contribution the Glanbia board has made with their 2c/l price commitment, suppliers are clearly disappointed with their failure to offset the premature and unjustified 1.5c/l cut,” he said.