Irish Farmers’ Association (IFA) president, Tim Cullinan, will meet with the cheif executive officer (CEO) of North Cork Creameries, Pat Sheahan, tomorrow (Thursday, July 21).
It is expected that the topics of fixed milk-price contracts and the creamery’s milk stability fund will be high on the agenda following recent representation made to the IFA on behalf of farmers supplying the creamery.
“Farmers are putting pressure on farming organisations to intervene now and help us get the funds paid out,” one farmer supplier of North Cork Creameries told Agriland.
Around 120 of the 240 farmers supplying North Cork Creameries are tied into fixed milk-price contracts. It is also understood that 12 of these fixed-price suppliers have 100% of their milk under contract.
The IFA confirmed the meeting is taking place but did not comment on its purpose, and a statement from North Cork Creameries stated that the meeting “isn’t specific to any particular matter”.
“We regularly welcome visits by farming organisations where a wide range of interest areas are always discussed,” a spokesperson said.
Milk stability fund
As reported recently by Agriland, farmer suppliers of North Cork Creameries who are in fixed milk-price contracts are calling on the board of the co-op to release money from a milk stability fund to help farmers who are currently struggling.
According to the co-op’s annual report, €4.8 million is available through the fund to “support future milk price”.
This €4.8 million milk stability fund was created by North Cork Creameries by setting aside a small percentage of the price per litre of milk paid to all farmers in 2021 – both fixed-contract and non-contract farmers.
It is understood that this fund is the equivalent of around 5c/L per farmer based on milk supplied in 2021.
The annual report states that the purpose of the fund – from which payments must be made within 36 months, or are liable for tax – is to “lessen adverse milk-price movements”.
“The board believes that, on the basis of recurring market volatility, payments from the stability fund are likely to arise within that timeframe,” the report states.
But farmers tied into fixed-price contracts say that adverse milk prices have impacted them for some time, and that milk stability fund payments should be made available now, to those who need it, and to those who want it.
They are calling on the board of the co-op to move on this now.