Glanbia Decision Based on Sentiment Rather Than Returns
Reacting to the decision by Glanbia to cut the July milk price by 2c/l to 35 c (vat inc), IFA National Dairy Chairman Sean O’Leary described the decision as extremely disappointing and excessive.
He said, “This decision seems to be as much a reaction to the negative market signals over the past fortnight rather than the market returns in the European market, where we sold the majority of our product for the month of July. While powder prices dropped somewhat, both butter and cheese prices firmed slightly”.
Sean O’Leary said, “The negative GDT returns have not impacted European markets to the same extent and the regrettable decision by Russia to ban imports of some EU products would not have had any effect on July prices”.
The July IDB PPI index fell to 118.1 but bearing in mind that the base 100 for the PPI was year 2010 at a CSO average milk price of 29.3 c/l plus vat, a milk price of approx 34.6c plus vat should be expected.
Mr. O’Leary called on other co-ops setting their July price over the next number of days to hold their nerve and pass on the full July returns to farmers.