Farmers Disappointed with Glanbia Milk Price Move
IRELAND - The Irish Farmers' Association has said that Glanbia's decision to lower its base milk price raises questions over the company's pricing model.
19 October 2015
1 minute read
Last week the price was cut by one euro cent (c) per litre to 24c/l, which with the 1c/l co-op top up leaves the price at 25c/l including VAT.
At a time when a market recovery is underway, the IFA called this decision "a serious confidence blow" to Glanbia suppliers facing into an expensive winter.
“Farmers are under tremendous cash flow pressure, and needed to see their price at least maintained, and both Lakeland and Kerry must be commended on holding their September milk price. All other processors must follow their lead and maintain prices,” IFA President Eddie Downey said.
“Glanbia shareholder suppliers legitimately expect that GII, the largest milk purchaser and processor in the country, would have the scale, efficiency and product mix advantages allowing it to pay, without co-op contributions, the most competitive milk price,” he said.
“Glanbia farmers are now concerned that the pricing policy adopted by Glanbia is leaving them at a significant price disadvantage to other co-ops. How can this be?” Mr Downey questioned.
Mr Downey called for a review of Glanbia's pricing model.
TheCattleSite News Desk
