Oct 182010

The Chairman of the ICMSA Dairy Committee, Pat McCormack, has described as 'outrageous' the decision of Tipperary Co-op to cut their September milk price and he said that the boards of the Co-op concerned now have very serious questions to answer on how they have arrived at their decision.

"We're constantly being told that our price reflects underlying market conditions and demand for our product. But how do we then arrive at a situation where dairy markets in September are stronger than they were in August, the Northern Ireland milk auction prices are also up, the IDB price has remained stable, the Fonterra auction price is up and the Dutch quotations are up, and yet milk suppliers to Tipperary Co-op have their prices cut? How does that reflect the underlying market demand? This decision is inexplicable and is guaranteed to cause anger and confusion amongst the farmer suppliers", stated Mr McCormack.

"Farmers were already disappointed that most co-ops had decided not to raise their September prices. But to learn, against the background of a robust international market and demand for dairy products, that certain Co-ops intending cutting their price is nothing short of astonishing and must now involve the management and board coming forward with a rational explanation of how they arrived at this bizarre decision", concluded Mr McCormack.


Queries to Cathal MacCarthy, 087-6168758

ICMSA Press Office