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Thursday 13 December 2018

Calls for Glanbia to address 3c/L milk price gap

Glanbia Ireland has a 2.4 billion litre milk pool from 4,800 suppliers
Glanbia Ireland has a 2.4 billion litre milk pool from 4,800 suppliers
Margaret Donnelly

Margaret Donnelly

The ICMSA has called on Glanbia to address the milk price gap, after it announced it was paying suppliers 29c/L as a base price for May milk.

Speaking following a meeting with the Chairperson and Chief Executive of Glanbia Ireland, the President of ICMSA, Pat McCormack said, that the board of Glanbia Ireland must immediately address the gap in milk price between Glanbia and other processors.

He said the justified anger amongst their suppliers is growing and the concerns of these suppliers, the backbone of the business will simply have to be addressed.

Since the decision on May milk price was taken, Mr McCormack said, that ICMSA officers have been inundated with calls from Glanbia suppliers who are very unhappy and angry that the Glanbia milk price is at the bottom of the standings for May and given the scale and product mix of Glanbia Ireland, their suppliers rightly expect that their milk price should be one of the best in the country.  

"The reaction of suppliers is one of fury - it has to be said - is fully justified. For a company with Glanbia’s status, paying a price 3c/L below the average is simply not sustainable and their suppliers simply cannot and will not tolerate it."

The ICMSA delegation clearly spelt out to Glanbia the concerns of their suppliers, the challenges facing farmers in what has been an extraordinarily difficult year with fodder shortages initially due to wet weather to now drought conditions.

He said that the Glanbia Ireland board must address the glaring gap in milk price at its July board meeting and also the differential that has existed over the last number of months.  

"Dairy markets have moved on positively with the Ornua index for May at 31.4c/L with an expectation that the index will increase for June.  

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"If Glanbia is serious about addressing their suppliers’ genuine concerns, then they are going to have to significantly increase their milk price and lead from the front for the remainder of the year.  

"This is what their suppliers want, their processors leading from the front on a monthly basis rather than paying retrospective and other bonuses."   

The Glanbia Ireland milk price has and is creating huge anger amongst its suppliers and ICMSA believes and clearly stated at the meeting that the board must address this matter in a clear and positive way at its July board meeting and expressed his hope that the board will respond constructively, concluded McCormack.

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