Glanbia milk price bonus ‘fully justified’
The 1.1c/L bonus for all milk produced between July and December of last year announced by Glanbia Ireland late last week has been described as “fully justified”.
According to the chairperson of the Irish Creamery Milk Suppliers Association’s (ICMSA’s) Dairy Committee, Gerald Quain, all co-ops should follow this example.
He welcomed Glanbia’s decision to hold its December milk prices as well as the 1.1c/L bonus announced for suppliers. But, he stated that the reality is that the Glanbia price will still be behind the price paid by some other processors.
As Ireland’s biggest processor, it’s incumbent upon Glanbia to ‘lead from the front’ on paying a strong price for milk on a monthly basis given its scale and product mix and we would hope this will be the policy pursued in 2018.
“None of this is to take away from this announcement, which was proper and justified,” he added.
Meanwhile, Tom Phelan – who was recently appointed as the chairman of the Irish Farmers’ Association’s (IFA’s) National Dairy Committee – also welcomed the announcement made by Glanbia and added that it was “correctly made”.
The 1c/L bonus paid by Glanbia for milk produced in the first half of 2017, alongside this 1.1c/L bonus, will help to ensure that Glanbia suppliers will not be at a disadvantage relative to the average milk price paid by co-ops, Phelan said.
He called on other co-ops to look very closely at their own situations to ensure their suppliers are not left behind.
Concluding, Phelan said: “Over the coming weeks, suppliers to Glanbia – and no doubt to many other co-ops – will be invited to attend information meetings all around the country.
“I urge co-ops to focus those meetings less on talking down milk prices, and more on outlining how they will work with and support farmers through downturns.”