The Irish Creamery Milk Suppliers’ Association (ICMSA) has expressed dissatisfaction at Glanbia’s decision to cut milk prices for the second month in a row.
Glanbia cut milk prices by 5.5 cent per litre between April and May. The ICMSA estimated the cut would cost farmers an average of €2,000 on May milk.
The Irish Farmers’ Association (IFA) said the decrease did not reflect current trends in the market.
Latest figures from the Fonterra Global Dairy Index show international dairy prices rose for the first time in two months in June by 13.5 per cent, although overall prices were down 27.5 per cent on last year.
“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,” ICMSA representative Pat McCormack said.
Both associations are calling on co-ops around the country to hold milk prices at April levels. “In these times of extreme volatility, and in the context of rising input costs, this is a major blow to Glanbia suppliers and will make it nigh on impossible for them to make the kind of on-farm investment required to deliver on the post-2015 expansion,” said Kevin Kiersey, IFA national dairy committee chairman.
Glanbia said it had no comment to make.