A “huge level of anger” has been building up among Glanbia suppliers over milk price, according to the Irish Farmers’ Association (IFA).
Speaking on the matter, IFA National Dairy Committee chairman Tom Phelan said Glanbia was the only milk purchaser to have cut its pay-out to farmers in both February and March.
Feedback from Glanbia farmer meetings and conversations with numerous suppliers clearly shows just how dangerously out of touch Glanbia has become as to how important a benchmark milk price is to farmers, Phelan added.
The chairman noted that, while Glanbia “rightly prides itself in being a leading player in the dairy industry”, its farmer suppliers legitimately expect it to be a leading payer too.
“And in this respect, all the farmers I speak to at the moment are bitterly disappointed with the poor Glanbia milk price performance,” Phelan said.
As a processor of milk, Glanbia Ingredients Ireland takes a margin of 3.2% after tax – the highest in the industry – which has been agreed with farmers to satisfy its lending commitments to fund expansion investment.
“Glanbia is a complex structure made up of many parts. It is well resourced, as shown by its ability to pay a €14 million trading bonus to farmers earlier this spring,” he said.
“However, Glanbia must realise that, ultimately, farmers will judge it on the milk price it pays every month.
“It must convince farmers that its ambition is not just to be a leading player, but also a leading payer,” he concluded.