The Irish Creamery Milk Suppliers’ Association (ICMSA) has said that Glanbia’s decision to cut its February milk price is “completely unjustified” based on market developments.
Gerald Quain has argued that “no amount of explaining could justify” Glanbia’s calculations for arriving at its milk price, which was cut by 0.5c/L to 31.5c/L, when announced last Monday (March 11).
“The cut is contrary to all market data and – yet again – represents a case where the Ornua Purchase Price Index (PPI) has been completely disregarded as the basis for establishing farmers’ milk price,” claimed Quain.
Quain has claimed that global dairy supply figures indicate a tightening of the worldwide market, with the values for powder “more than compensating” for the softening butter price.
It’s impossible to work out why Glanbia has decided to cut their milk price. One thing is absolutely certain – farmers are very angry at the decision.
“Glanbia cannot continue to focus on the negatives in relation to dairy markets rather than the positives.
“Suppliers expect their processor to lead from the front on milk price, and they are extremely disappointed by the reduction,” he said.
‘A let-down for suppliers’
Meanwhile, the Irish Farmers’ Association (IFA) also criticised the Glanbia decision, calling it a “let-down for suppliers“.
The association’s dairy chairman, Tom Phelan, earlier claimed that current market returns “would justify a higher payout” than Glanbia is currently returning.
Phelan called on all other co-ops that are due to release their February prices to reflect the “firmer” European and global market returns.