The Irish Farmers Association (IFA) is calling on other dairy processors to follow in the footsteps of Lakeland Dairies and Glanbia and address fixed milk price contracts,
IFA Dairy Committee chair, Stephen Arthur, has acknowledged the moves by Lakeland Dairies and Glanbia regarding supplementary payments on fixed milk contract volumes.
“It is important that Lakeland and Glanbia are acknowledging the serious situation suppliers who entered fixed milk price contracts, in good faith, now find themselves in,” Arthur said.
“The increase in input costs is unprecedented and requires action by all stakeholders to address the issue.
“Other co-ops and processors must now come forward in the coming days with serious proposals to address the issue,” he added.
Fixed milk price
Yesterday (Thursday, May 12) Glanbia announced that it will pay its milk suppliers a total of 50.08c/L (including VAT) for April milk supplies at 3.6% butterfat and 3.3% protein.
The price consists of the following:
- The Glanbia base milk price for April is 46.58c/L (including VAT);
- Against a backdrop of record farm input costs, the board has agreed to pay a 3c/L Agri-Input Support Payment on all milk supplied in April;
- A Sustainability Action Payment of 0.5c/L (including VAT) is being paid monthly on all milk supplied in 2022 to recognise specific sustainability actions being undertaken on farm.
Glanbia Co-op chairman John Murphy said: “We are at a crucial time of year for investment in farm inputs to ensure adequate fodder supplies for next winter and spring.
“The board has decided to make a 3c/L Agri-Input Support payment on all April milk supplies.”
It followed an announcement earlier in the day by Lakeland Dairies that it is increasing the price paid to farmers on existing fixed milk-price contracts.
In the Republic of Ireland, all fixed milk volumes will receive an 8c/L supplementary payment from April 2022–December 2022 inclusive.
In Northern Ireland the corresponding payment will be 7p/L on all milk in fixed-price schemes for the same months.
In a statement, the company said that the decision was made to “help alleviate the prolonged on-farm cost squeeze for farmers engaged in these contracts”.
It pointed to the severe inflationary pressures on feed and fertiliser which “continue to bite”.