Glanbia in firing line on milk price
Dairy farmers have rounded on Glanbia Ingredients Ireland (GII) for its failure to increase the milk price for February, despite signs that international dairy markets are strengthening by the day.
The decision by Glanbia to hold milk price at 33c/l including VAT for February has infuriated farmers, who insist they have been let down by the new organisation.
IFA dairy chairman Kevin Kiersey called on all co-op boards meeting this week to seize the major opportunity GII missed to lift milk prices to 34c/l plus VAT.
His call comes against a backdrop of lower global milk production and higher dairy ingredient prices.
Prices on the online Global Dairy Trade (GDT) auction jumped by 10.4pc last week as the effect of severe drought was felt on New Zealand dairy production.
Milk production on New Zealand's North Island is expected to fall by 15pc this year as a result of drought in the island's dairy regions.
This contraction in New Zealand milk, combined with a slow start to European milk production, should benefit Irish dairy farmers. Some industry experts are now forecasting a strong milk price to be sustained through 2013.
"A lot of the dairy market is about sentiment and when demand is strong, any hiccup on the supply side will push buyers into securing their dairy products as soon as possible," said one dairy industry insider.