Both the ICMSA and the IFA have come forward with reservations regarding the new fixed milk price scheme, as outlined by Glanbia during the week.

IFA

Glanbia should re-examine linking feed and milk in new fixed price scheme as it is anti-competitive, according to IFA national dairy committee chairman Sean O’Leary.

O’Leary said that while the five-year fixed milk price contract announced this week by Glanbia is another important effort to help farmers manage their milk price risk, giving preferential access based on linkage with feed purchases from Glanbia is objectionable to the majority of farmers who had been in touch with him.

“The Glanbia farmers on the National Dairy Committee and other Glanbia suppliers who have contacted us are adamant that they should be able to choose quality feed, much of which is now covered by the Bord Bia Quality Assurance Scheme, from a variety of competitively priced sources, including Glanbia,” he said.

This statement comes on the back Ireland’s longest-ever fixed milk price scheme by Glanbia, offering farmers 29.33c/l, excluding VAT (31c/l including VAT) for a five-year term.

The new scheme is combined with a €30/t feed discount offering for dairy farmers who sign up.

However, the IFA is adamant that the feed provision of the scheme should be re-evaluated.

“We will, therefore, urge Glanbia to re-examine this provision in their proposed risk management scheme,” O’Leary concluded.

ICMSA

Similarly, ICMSA welcomed Glanbia’s positive approach towards risk management, but criticised linking feed and milk to a fixed milk price scheme.

ICMSA president John Comer said that the farming organisation have reservations surrounding this arrangement.

Farmers in the Glanbia region have also expressed reservations, stating that the linking of feed to the fixed milk price scheme may distort competition among feed mills in the area.

“Others, such as purchasing groups, may be penalised if they purchase from other sources and will not be prioritised for future FMP schemes.

“Given that all feed purchased on the farm is from quality assured sources owing to the Sustainable Dairy Assurance Scheme, it seem unnecessary that a closed loop for consumption of grains, as stated by Glanbia Ireland, is needed in this scheme.”

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