IFA National Dairy Committee Chairman Sean O’Leary said the decision by Glanbia Ingredients Ireland (GIIL) to cut their May milk price by 2c/l was disappointing.
Mr O’Leary said GIIL, as the largest milk processor in the country, with strong efficiencies and a varied product and market mix, had missed an opportunity to allow their suppliers optimise their income at peak – something Irish dairy farmers have not been able to do in recent upturns.
While accepting that market prices had declined, Mr O’Leary reminded other co-ops that they had benefited from strong accumulated profits for 2013. “They have also received €13m worth of dividends and bonuses from the IDB in respect of 2013 trading. EU average dairy returns throughout May exceeded 42c/l, which would have allowed co-ops to cover processing costs while holding current milk prices.”
He urged all board members to bear in mind their fellow farmers’ cash flow requirements and the need to preserve both their goodwill and their confidence, by holding the May milk price.