Unchanged Glanbia October price ‘inexplicable’
Glanbia’s decision to announce an unchanged milk price for October has been labelled “inexplicable” by the Irish Creamery Milk Suppliers’ Association (ICMSA).
Commenting, ICMSA Dairy Committee chairperson Ger Quain called on the board of Glanbia Ireland to immediately review its decision of a held 28c/L base price.
Quain said the decision “completely ignores recent strong climbs” in the Ornua Purchase Price Index (PPI) which co-ops base their farmer milk price on.
“Remember, even that 29c/L – which is 2.5c/L below the Ornua price – is calculated by Glanbia Ireland to include a so-called ‘support payment’ of 1c/L,” Quain said, adding that the base price “for the milk itself” is a full 3.5c/L below the Ornua index “and below what the market is currently returning”.
“Glanbia suppliers have been in contact with the ICMSA to express their anger at the decision and I have to say that I think they’re fully entitled to feel that anger.
It’s worth noting that this price now leaves a 400,000L Glanbia supplier about €850 short on his or her October milk cheque beneath the figure the Ornua price indicates.
“The Ornua Index was introduced as being a transparent and agreed basis on which the constituent members of Ornua would be able to base their own farmer prices.
“All market indicators and data point to a milk price of at least 31c/L and we are calling on the board of Glanbia Ireland to review its decision and immediately raise the October milk price to that level,” Quain concluded.