Jun 162014
 

"ICMSA is happy to acknowledge the Kerry decision and we would see it as providing exactly the kind of leadership and commitment that the whole sector can learn from.  Kerry does not make decisions like this on the basis of sentiment, they obviously agree with our own analysis that shows that that the market has levelled off with some indicators actually improving.  There’s also the fact that there has been a demonstrable lag in both the scale and timing of price rises from processors to farmers that means that sufficient reserves were build up at Co-op and processor level to enable them to hold prices in these circumstances.  The Kerry decision is a plain and simple recognition that markets are in a better condition than has been stated by other processors.  This decision represents the kind of commitment to suppliers that farmers need going forward into the post-quota era because it shows a major processor making a decision on the basis of stability and a rational view of the medium to long-term prospects.   ICMSA would  say that it also demonstrates a much more advanced strategic understanding of where Irish milk supply is headed than many other processors and Co-ops who still seem wedded to the old model of ‘low and slow’ rises on a strong market to be followed by instant and hefty cuts at the very first opportunity. “

Concluding, Mr. McCormack called on other processors who have yet to set May milk price to follow the example set by Kerry and hold milk price at April levels.

Ends   16 June 2014.

Pat McCormack, 087-7608958

Deputy President,  ICMSA

Or

Cathal  MacCarthy, 087-6168758

ICMSA Press  Office