Glanbia has been called on to reconsider its price offers on feed grain for 2019 by the Irish Grain Growers Group.

This week, Glanbia set a base price of €128/t for green barley.

“We cannot grows crops at those prices and the high costs involved. We call on Glanbia to reconsider its offer.

“We believe a figure above €160 should be what they should be offering their members this harvest.

Excess

“Tillage farmers should not be paying the price now for Glanbia's ineptitude to control their spend on imported grains in 2018. This led to an excess of imported grain on the Irish market in 2019.

“The fodder crisis allowed the flood gates to be opened, aided by farm bodies and the Government,” the group has said in a statement.

Short-sighted

The group believes that the offer of €128/t is a “short-sighted accounting decision” that bears no relation to the actual cost of growing grain in Ireland in 2019.

It also said that Irish tillage farmers recognise the marketing power of its grain, citing low GHG emissions to grow the grain, fully recorded husbandry, provenance, high quality and GMO-free status along with full traceability – “all of which consumers will be prepared to pay a premium for in the future where carbon value and environmental focus will be key to marketing Irish produce”.

Market support

“We want Glanbia to explain that when grain prices have collapsed, the board of the co-op agreed to pay a market support payment of only €3/t when they continued to pay 0.5c/l for milk as a market support payment.

“Milk prices have not collapsed, however. By our calculations the equivalent to €8-10/t is being paid to our fellow farmers in dairying. Tillage farmers cannot be allowed to be treated as second class members of their own co-op and we call on the board to ensure all farmer members are treated equally.

“Tillage farmer members, unlike their fellow dairy farmers, have plenty of options where they do their business, Glanbia would want to remember that when sitting around the board table,” it said.

Read more

Grain buyers called on not to follow Glanbia lead on price

Glanbia drops green barley price by 33%