Glanbia’s decision to cut the milk price by a further three cent per litre has dealt a severe blow to the confidence of dairy farmers, according to the Chairman of Waterford IFA.
Michael Keane stated that the latest cut announced by the plc left the Glanbia milk price 1.4 cent per litre short of the price set by Kerry for September.
“The Glanbia board decision is taking €1,030 out of the pocket of a 363,000 litre (80,000 gals) producer for the September milk alone, in addition to the €11,700 cuts from Glanbia in the year to the end of August,” according to Mr Keane.
Said IFA Dairy Committee Chairman Richard Kennedy: “Milk producers legitimately expect better from the biggest, most efficient milk processor with the best product mix in the country, which is also making the biggest profits at the expense of farmers on inputs.
“Glanbia have the largest pool of milk in the country, with a mix of product which ensures that their exposure to commodities is far more limited than that of many other Irish co-ops,” he added.
“Glanbia have told us time and again how they have invested heavily in rationalising the company. They certainly have the best scale in the country and should be by far the most efficient milk processor.”
As the largest seller of inputs in the country, Glanbia is currently making massive profits from farmers on fertilisers, feed, and other inputs, said Mr Kennedy.
“Glanbia suppliers, who are faced with production cost increases, due to input inflation and poor summer weather, of around six cent per litre in the last 12 months, simply cannot accept this deplorable price cut,” he stated.