16 Jan 2014
IFA WELCOMES REMOVAL OF GLANBIA GROWTH MILK LEVY AND VOLATILITY INITIATIVE, BUT WARNS NEITHER MUST MUDDY WATERS ON MILK PRICEDairy
IFA National Dairy Committee Chairman Sean O’Leary said he welcomed the decision by the Glanbia board to do away with the 2c/l levy which was to be applied to all ‘growth’ milk on expanding dairy farmers post 2015. He said he saw the decision as a recognition that the growth milk would go into higher value markets, benefiting all producers, whether or not they decide to expand.
“IFA is in principle supportive of fair, negotiated and well-structured financial contributions from farmer shareholders to the development of their co-ops. However, I see this move as a positive one, which should help reduce the cost of expansion for Glanbia producers,” he said.
Mr O’Leary also said the decision by Glanbia to create a €5m volatility fund, to be paid out in its entirety within 2 years, was a worthwhile initiative. “I intend to meet Glanbia very soon to discuss the details and mechanisms of this proposed scheme. To gain farmers’ confidence, it needs to be totally transparent, and cannot be allowed to muddy the waters on milk prices. GIIL must at all times return the best possible price from the market place,” he concluded.