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Farmers need a solution to the withdrawal of Arrabawn and Aurivo from the KPMG/Irish Farmers Journal annual milk price review.
That was the overriding message from a meeting of Fear Glas, a discussion group made up of Aurivo suppliers, on Tuesday. On the farm of Kevin Moran outside Tuam, farmers discussed the reasons behind Aurivo’s withdrawal and what the way forward should be.
Aurivo has said it believes the review is flawed because it excludes milk bought on liquid contracts.
Farmers asked what milk was considered to be manufacturing. They questioned whether milk bought on special contracts, such as UHT, should be considered if fresh milk was excluded.
One farmer, Ronan Joyce, said that while the co-op may have issues, walking away was not in the interests of suppliers.
“I think jumping ship is wrong. I would rather the co-op say ‘We’re not happy but at least we’re transparent’.”
Padraig Joyce from Westport said farmers needed to be able to compare milk price. “In the northern half of the country you will have no direct comparison with two co-ops pulling out,” he said.
Farmers asked if a compromise of a manufacturing table and another representing all milk could resolve the issue.
However, Cathal Garvey, a milk supplier and co-op board member, said there were concerns this would allow liquid milk purchasers to know what co-ops paid and push down prices.
Vinny Griffith, an Aurivo technical adviser, summed it up when he said: “Having an independent milk price review is not a bad thing and we do want to be in it, but the issues that are there have to be sorted.”
Dairy farmer, Caherlistrane, Co Galway
“We are always very aware of the need for transparency in terms of pricing and processor performance.
“You would be concerned that as a solely manufacturing milk supplier you wouldn’t have proper benchmarking with other co-ops if all milk was lumped into one.
“That said, it does raise the issue that Aurivo has certain grievances with it and the definition of what is manufacturing and what is liquid. It’s not clear cut. There’s a grey area in between. I think you need both parties to get back around the table and argue out that grey area because we need everyone in the milk league. It’s no good unless you’ve everyone.
“As a farmer, I’m not about taking sides. You can see both sides of the argument but this is where you need an independent panel of mediators. I think I speak for the vast majority of my comrades that we just want to see a solution brought to the table.”
Dairy farmer, Ower, Co Mayo, and co-op board member
“Aurivo made the decision after discussing with the Journal for a few years about including liquid milk and having it indicated to us that it will be reviewed. The decision seemed to come again that it will be reviewed again and kicked on to next year. We felt our request was being ignored.
“We didn’t feel there was a lot of alternatives but to withdraw, considering milk being milk, and a lot of high value-addeds being included. Liquid milk may not be the product it was 20 years ago but the premiums being paid for it are not being recognised.
“Aurivo is unique in the sense historically we’ve got liquid milk plants. The price we’re paying isn’t being represented by the milk price review as it is.
“This year we’ve looked at getting out but the most important thing with any decision is that it is kept under constant review and we keep talking.”
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