The decision of Glanbia to cut May milk price by 2.5 cents per litre is extremely disappointing for farmers and fails to recognise improvements in markets over recent weeks and the pressures on farmers due to previous milk price reductions, escalating costs and adverse weather conditions, according to Mr. Pat McCormack, Deputy President and Chairperson of ICMSA’s Dairy Committee.
The 2.5 cents per litre cut is equivalent to about €900 for May milk alone for the average farmer and when combined with the April milk price reduction, the cut in income on May milk is about €2,000.
“In two months alone, Glanbia has cut milk price by 5.5 cents per litre and is in sharp contrast to the position adopted when dairy markets were improving in 2011 when all Co-op were slow to pass back market improvements” stated Pat McCormack.
“Farmers can legitimately ask the question why the sharp contrast in policy when milk price is rising and when milk price is falling?”
“It is acknowledged by everyone that dairy markets have improved in recent weeks and given the pressures on dairy farmers, Co-op boards should be taking a long-term view.”
Mr. McCormack concluded by calling on Glanbia to review its May milk price and to all other Co-ops to hold their milk price at April levels.
Issue dated: 15 June 2012
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