The decision of GIIL to cut their base price to 22cpl for March milk is unjustified and will be extremely disappointing to their milk suppliers according to Gerald Quain, Chairperson of ICMSA Dairy Committee. “GIIL have invested in scale over the last number of years and actively encouraged their suppliers to do the same and it is absolutely imperative that their suppliers are not put ‘to the wire’ for merely following GIIl’s lead and trying to improve their businesses”, he said.
This is a critical juncture for the Irish dairy farmer and it is a matter of profound regret that the largest processor in the country is leading the way in cutting milk price. Glanbia are a global brand and have invested large amounts of money into processing capacity and, as a global leader, they should be demonstrating a commitment to our sector and their suppliers by paying a price at the top- not the bottom. We recognised and acknowledged their decision to subsidise price by means of the “co-op support” but that cannot – and does not – offset the fact that they seem to be setting the pace in terms of reducing base price”, noted Mr. Quain.
The ICMSA spokesperson pointed out that looking at the market for actual products sold in March, the Ornua PPI shows a return of 84.2 or the equivalent of 23.7cpl, indicating even less justification for the action. “The index only fell 1.2 percentage points, which is the equivalent of less than one third of a cent per litre. While spot quotes remain in trouble on the market, it is not unrealistic for farmers to expect to receive the same price for their product as we know was actually paid to Ireland’s largest Co-op Ornua last month”, concluded Mr. Quain.
Ends 14 April 2016
Gerald Quain, 086-3623041
Chairperson, ICMSA Dairy Committee
Cathal MacCarthy, 087-6168758
ICMSA Press office