March Milk Price Cut By Glanbia Shortchanges Farmers – O’Leary

Commenting today (Thursday) on the price cuts implemented by Lakeland and Glanbia GII on March milk, IFA National Dairy Chairman Sean O’Leary said the the 1c/l Lakeland cut was undoubtedly disappointing.


However, the Glanbia cut left GII paying a price, at 22c/l including VAT before co-op and exceptional Ornua bonus top ups, 1.7c/l out of line with what they were receiving from Ornua for March based on the PPI, namely a farm milk price equivalent of 23.7c/l including VAT.


This short-changes their suppliers very severely, and strongly suggests that GII is seeking to keep the cost of milk well below that paid for by other co-ops.


“I have repeatedly said that it was unacceptable for co-ops to let farmers carry 100% of the market risk. I am very disappointed today that GII are doing just this – paying farmers the lowest possible base price while utilising the co-op’s resources – farmers’ own money – and  the bonus received from Ornua to prop up the price,” he said.


“To say that Glanbia suppliers are angry is an understatement. I will be looking for a meeting with Glanbia at the earliest opportunity,” Sean O’Leary concluded.


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