Commenting on the decision of Glanbia and Lakelands Dairies to increase the milk price paid to farmers by only a single cent per litre, the Chairperson of ICMSA’s Dairy Committee, Gerald Quain, said a one cent per litre increase was demonstrably well short of market improvements and he accused Co-ops of “yet again” holding back on milk price improvements for farmers.
“The Ornua PPI now stands at 92.2 which is equivalent to 26.6 cents per litre and that’s based on a 6.5 cent per litre processing cost – itself an excessive figure in our opinion and one which certain Co-ops have confirmed as being below their processing costs. The PPI is based on returns from Ornua to member Co-ops and, on this basis, a milk price of at least 27 cents per litre is clearly and demonstrably justified. If that wasn’t indicative enough, the spot market in the UK is now at 40 pence per litre, in the Netherlands it’s at 42 cpl and in Italy at 39.2 cpl. These are published figures and all dairy market indicators clearly show that markets continue to strengthen with global supply growth now at 1.4 percent below the growth level in demand. Against that background and in the context of the well known and massive cash-flow pressures on farmers, giving farmer-suppliers a single cent rise is derisory and we’re calling on Co-op boards to insist that their base price for September is at least 27 cents per litre. I’ll repeat this because it bears repetition: This is the price that Ornua is returning to their Co-ops and that is the price that the Co-ops need to be returning – in full – to their member-suppliers”, concluded Mr. Quain.
Ends 13 October 2016.
Gerald Quain, 086-3623041
Chairperson, ICMSA Dairy Committee
Cathal MacCarthy, 087-6168758
ICMSA Press Office