Glanbia come out fighting on milk price cut
'We have paid a strong price this year' claims chief executive
Dairy markets will remain "precarious" over the coming months, the head of Glanbia Ingredients Ireland (GII) has warned.
Responding to criticisms of Glanbia's recent decision to cut prices by a further 1c/l to 24c/l, the company's chief executive Jim Bergin (pictured) also maintained that GII has paid a "strong" milk price this year.
He said an analysis of milk cheques would show the company was paying 32c/l on average for the entire year, including protein and fat constituents.
Speaking at an IFA meeting in Co Meath last week, Mr Bergin said he had advised the Glanbia board to take the "harsh" decision to cut the milk price to a base of 24c/l, with a 1c/l co-op top up, in response to volatile marketplace conditions.
"We know that it has caused considerable anger, and it caused worry and concern," admitted Mr Bergin.
The Global Dairy Trade index has dipped after recent rises and analysts have warned stocks remain high, particularly in the US and China.
However, Glanbia came under fire at last week's meeting in Navan. Meath dairy farmer Diarmuid Lally said the company had received "cheap milk" all year and warned the current price was a "mile off the mark".