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Glanbia Must Commit to Top Prices say Suppliers

26 June 2008

IRELAND - 500 milk suppliers called out for Glanbia, the leading milk processor in the country, to pay the top milk price in the country.

The overwhelming consensus of the Waterford IFA dairy meeting in Dungarvan was that Glanbia must commit to a structure ensuring farmers are paid a milk price substantially higher than the country’s average.

The meeting heard strong demands for a return of the May and June price cuts, totalling 3c/l, and the payment of an average 2008 milk price matching the IFA 34c/l target.


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"Glanbia suppliers have made many sacrifices to make Glanbia the large company it is today"
IFA President Padraig Walshe

Speaking at the meeting, which was also addressed by Glanbia CEO John Moloney and Chairman Liam Herlihy, IFA President Padraig Walshe said “Glanbia suppliers have made many sacrifices to make Glanbia the large company it is today, so that it would have the scale and efficiencies to take on international competitors and the retail trade, and the ability to invest to develop a higher value product mix. They did so because they were led to believe that this would secure their future as milk producers, and would deliver them top milk prices.”

“Why, then, are they now being asked to take the same price cuts as the suppliers to commodity processing co-ops? Why are they expected to accept an average milk price, not a leading one, at a time when their production costs are going through the roof?” Padraig Walshe asked.

IFA National Dairy Committee Chairman Richard Kennedy added: “The Board of Glanbia are meeting this morning (Wednesday). They cannot ignore the depth of feeling among their suppliers. The cuts implemented by Glanbia so far have reduced the income of their average supplier by over €5,000 over the April to June period alone.”

“This is at a time when feed, fertiliser and fuel costs are shooting up, and could reduce 2008 dairy incomes by over 10%,” he added.

“Glanbia must not look after the stock market at the expense of their milk supplier co-op shareholders. They must see to it that producers get a fair return from their large, efficient and higher value product mix, as well as their highly profitable overseas businesses,” he said.

“Glanbia must put forward a pricing structure which will guarantee their suppliers the top milk price in the country,” he concluded.

Further Reading

- Go to our previous news item on this story by clicking here.

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