‘Unwarranted’ Glanbia cut ‘usual default response’ – ICMSA
The Glanbia decision to cut its milk price for July supplies is unwarranted and represents “the usual default response of co-ops and processors”, according to the Irish Creamery Milk Suppliers’ Association (ICMSA).
Commenting on the issue, ICMSA dairy committee chairperson Ger Quain said the default response is: “When in doubt, cut farmer milk price.”
Continuing, Quain said that, by Glanbia’s own admission, production in several key regions was down on corresponding levels last year.
While there may be some questions about market confidence and current levels of uncertainty, the decisive supply-demand data is still fundamentally sound.
“ICMSA cannot accept the rationale advanced to justify a cut of 1c/L.
“We think this is just a knee-jerk and unwarranted price cut and we do not – and never will – follow the logic of cutting base milk price and then artificially restoring some of that cut by some discretionary ‘support’ payment.
“Glanbia suppliers will be infuriated – and they’ve every right to be,” Quain concluded.
Glanbia lowers July milk price
Earlier today, Glanbia announced it will pay its member milk suppliers 29.5c/L including VAT for July manufacturing milk supplies.
Glanbia Ireland (GI) will pay a base milk price for July of 29c/L including VAT, for manufacturing milk at 3.6% fat and 3.3% protein. This is a reduction of 1c/L from the June base price.
The board of Glanbia Co-op has decided to continue to make a support payment to members of 0.5c/L including VAT for July milk supplies, according to the company.