Glanbia Ireland board must address milk price gap – ICMSA
“The board of Glanbia Ireland must immediately address the gap in milk price between Glanbia and other processors as the justified anger amongst its suppliers is growing,” said the president of the Irish Creamery Milk Suppliers’ Association (ICMSA), Pat McCormack.
Since the decision on the milk price for May was taken, McCormack said: “The ICMSA officers have been inundated with calls from Glanbia suppliers who are very unhappy that the Glanbia milk price is at the bottom of the standings for May.
“Given the scale and product mix of Glanbia Ireland, its suppliers rightly expect that its milk price should be one of the best in the country. For a company with Glanbia’s status, paying a price three cents per litre below the average is simply not sustainable and its suppliers cannot tolerate it.”
The ICMSA delegation outlined to Glanbia the concerns of its suppliers and the challenges facing farmers in what has been an extraordinarily difficult year. There have been fodder shortages – initially due to wet weather and, now, drought conditions.
The Glanbia Ireland board must address the glaring gap in milk price at its July board meeting and also the differential that has existed over the last number of months.
Dairy markets have moved on positively with the Ornua index for May at 31.4c/L with an expectation that the index will increase for June.
McCormack highlighted: “If Glanbia is serious about addressing its suppliers’ genuine concerns, then it is going to have to significantly increase its milk price and lead from the front for the remainder of the year.
“The suppliers want their processor leading from the front on a monthly basis rather than paying retrospective and other bonuses.”