'Completely unjustified' - Milk price cut a 'big blow' to farmers
- Kerry Group: unchanged at 31c/L
- Glanbia: 30.5c/L down 1c/L on its February price
- Lakeland Dairies: 31.56c/L cut of 0.5c/L on February price
Farmers have reacted with anger over the decision of Glanbia and Lakeland to cut their respective milk price.
IFA’s Dairy Chairman Tom Phelan said the decision was a big blow for farmers.
He said “the decision by both co-ops was unwarranted. Cash flow on dairy farms is critical at this time of the year, with farmers facing increased costs of production across the board.”
“When you consider that Ornua will be paying a €19m year-end operating bonus to member co-ops, up 27pc on last year, you’d have to say the decision by Glanbia, in particular, is completely unjustified,” said Tom Phelan.
Glanbia announced that it will pay 30.5c/L for March milk supplies - down 1c/L on its February price.
Glanbia will pay its Member milk suppliers 30.5c/L including VAT for March manufacturing milk supplies and it won't include the 1c/L interim market payment it paid on January and February supplies.
The move comes as milk production is on target to top 8bn litres this year, with deliveries to some producers up 12-13pc in the first quarter compared to the first quarter of 2018.
In a statement it said that "in line with current market returns, Glanbia Ireland (GI) will pay a base milk price for March of 30c/L including VAT, for manufacturing milk at 3.6pc fat and 3.3pc protein.