It's Time For Glanbia To Follow EU Footsteps
IRELAND - IFA National Liquid Milk Committee Chairman Eamonn Bray today (Wednesday) said the analysis of liquid milk markets which had emerged from the World Dairy Summit sessions confirmed strongly his belief that the margins in the liquid milk chain need to be re-distributed with a much higher share going to liquid milk producers, in order to secure milk supplies. Indeed, this is already happening, particularly in the UK and in Germany.
8 October 2007
2 minute read
"German delegates confirmed that their dairies have been able to obtain an 18c/l wholesale price increase from retailers – at least 1c/l more than the retail price increase"
IFA National Liquid Milk Committee Chairman Eamonn Bray
He said Glanbia, by far the largest liquid milk dairy in Ireland, had a particular onus on them to start this process by setting a winter milk price of 50c/l + VAT, and then securing whatever margin increase is required from the retail sector. He urged them to engage more seriously into negotiations with Fresh Milk Producers to deliver the necessary price increase from this month.
“At the World Dairy Summit, both Tiny Sanders, CEO of Dutch dairy giant co-op Campina and Jim Begg of Dairy UK, president of the International Dairy Federation, highlighted the necessity to redistribute margins with higher payments to farmers, in order to secure milk supplies of the right quality to satisfy consumer and retailer specifications and demands,” Eamonn Bray said.
“German delegates confirmed that their dairies have been able to obtain an 18c/l wholesale price increase from retailers – at least 1c/l more than the retail price increase - which has been used to pass back a significant price rise to German farmers,” he added.
“In the UK, fears of supply shortages so worried retailers that they and processors are now paying farmers around 45% more for their milk than they did last year – and our British counterparts expect still further increases,” he added.
“In Ireland, the structure is different, but the problem is the same: the National Milk Agency has already warned of possible winter milk shortages after 2008 if a major price adjustment does not take place urgently,” he said.
“I call on Glanbia, who are the largest processor of liquid milk in Ireland, to engage very much more seriously than they have todate in negotiations with Fresh Milk Producers, in order to deliver at least 50c/l + VAT for the winter months,” he concluded
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