Glanbia farmers want strong base price

A strong base price is more important to the average Glanbia supplier than conditional bonuses, farmers at an IFA meeting on milk price in Navan on Tuesday night agreed.

Glanbia board member and Louth farmer Eamonn McEnteggart put it to the room that if suppliers wanted to change the current pricing structure, money needed to be found to do that. Under the current structure, 60% of the 3.2% profit after tax in Glanbia Ireland comes back to farms of active co-op members. To change this, the co-op would need to increase its stake in Glanbia Ireland, McEnteggart said.

“The return to farmers is different to milk price. Do we want to get rid of everything else [such as trading schemes] and just put it into milk price?” he asked.

The resounding answer from dozens of farmers was “yes”.

McEnteggart said that all messages from suppliers would be channelled back to Glanbia management.

“I agree with all the schemes but they should not interfere with the day-to-day running of the business,” one farmer said. The IFA called for a leading monthly milk price from a leading player.

Ornua’s purchase price index (PPI) rose by 1.7% in April, to return a farmgate price of 29.99c/l excluding VAT.

The Glanbia board is due to set milk price for April next Monday, but there were no reassurances from the two board members present that they would hold or increase milk prices.

“It would be negligent for a director of the company to pay money that isn’t there in the market,” McEnteggart said.

The competitiveness of Glanbia’s agri-business was also called into question at the meeting.

Some farmers feel they pay over the odds for products in Glanbia agri-stores but board member Diarmuid Lally said that “if you shop around, Glanbia should be able to match it”.