With the latest milk price drop of 3 cents a litre, Glanbia has taken around €1,000 from the pockets of many milk suppliers for the month of September alone.
According to Padraig Walshe, the president of the IFA, that’s the amount of money that an 80,000 gallon milk producer will lose for his milk payment last month. And while not at all happy, he added that this latest milk price decrease to the farmer "is in addition to the €11,700 that Glanbia has already taken from milk suppliers during the current year.
Mr Walsh also told the Kilkenny Advertiser/Carlow First on Tuesday that " the decision by the Glanbia board to cut the price of milk by a further 3 cents a litre for the month of September was another blow to dairy farmers’ confidence in the industry, and I know that they will be worried about making further investment in milk production in the future."
The IFA president also stated that "Glanbia milk producers expected better from the biggest and most efficient milk producer with the best product mix in the country. Glanbia is also making the biggest profit at the expense of the farmers who are producing the raw material. You could say that I am not a happy camper when I realise that Glanbia are now paying 1.4 cents a litre which is 6.35 cents a gallon less than Kerry Co-Op."
Mr Walshe also pointed out that Glanbia has the largest pool of milk in the country, with a mix of product which ensures that their exposure to commodities is far more limited than that of many other Irish milk Co-ops. "Glanbia has told us time and time again, how they have invested heavily in rationalising the company. They certainly have the best scale in the country and should be by far the most efficient milk processor. These advantages are certainly not reflected in the price that they are paying for their milk," he exclaimed."
He also remarked that Glanbia is also the largest seller of farm inputs in the country and are currently making massive profits from farmers with the sale of fertilisers, feed, as well as other inputs."
In a statement, Glanbia said that the reason for the September milk price reduction was "due to the continued volatility on global dairy markets, and declining dairy market returns which was compounded by the downturn in the global economy."
The Glanbia chairman Liam Herlihy, commented that “we fully understand the disappointment and frustration felt at farm level with suppliers trying to cope with volatile milk markets in the context of rising costs."
However, Glanbia also confirms that it has agreed a liquid milk price for September. The Glanbia liquid milk price is to be 41.03 cents per litre (VAT inclusive ) for September and October, and 42.08 cents a litre for the months of November and December. These prices include the 1 cent per litre milk price support from Glanbia Co- operative society which the board will propose be extended to liquid milk suppliers at the AGM of the society.
