The Chairman of ICMSA's Dairy Committee, Pat McCormack, said the IDB decision to cut the price of SMP against all the market trends was simply unacceptable and he called on Kevin Lane to explain the reason behind the decision.
"The IDB decision to reduce the price of SMP in the face of a strengthening world market is plainly not acceptable and the Chief Executive, Kevin Lane , must explain why this has happened. It is our firm belief that the IDB executive must revisit and change this decision. All market indicators have been positive for the last month and the IDB is the only entity to cut its price. This surely calls for a full explanation to be given to the Irish farmers who are the owners of the IDB and who contribute directly and continuously to operational costs. Dairy farmers will look at this reduction in price – as well as the costly report by KPMG which has very little practical recommendations – and they will not at all be convinced that this is the way we should be heading. They'll be absolutely certain, however, of one thing: at a time when world markets are actually gaining in strength it is not acceptable to see the IDB reduce the price paid for SMP and not alone will they want to see that cut reversed – they will want to know why the decision was taken in the first place. Kevin Lane will have to provide that explanation", stated Mr McCormack.
Ends. 8 June 2011
Pat McCormack, 087-7608958
Chairman, ICMSA Dairy Committee
Cathal MacCarthy, 087-6168758
ICMSA Press Office