Glanbia’s decision not to change their October base price, which is set at 27.5c/l excluding VAT, has been described as “inexplicable” by Ger Quain, Irish Creamery and Milk Suppliers Association (ICMSA) chair.
The comment comes as Ornua adjusted their October price to 29.88c/l (excluding VAT). He has now called on the board of Glanbia Ireland to immediately review its decision.
They are actually paying a price for the milk itself that is a full 3.5c/l below the Ornua index
Ger Quain said the decision completely ignores recent strong climbs in the Ornua PPI on which all co-ops base their farmer milk price.
“Remember that even when 29c/l, which is 2.5c/l below the Ornua price, is calculated by Glanbia Ireland to include a so-called ‘support payment’ of 1c/l. So they are actually paying a price for the milk itself that is a full 3.5c/l below the Ornua index and below what the market is currently returning.”
Anger
Quain said: “Glanbia suppliers have been in contact with ICMSA to express their anger at the decision and I have to say that I think they’re fully entitled to feel that anger.
"It’s worth noting that this price now leaves a 400,000-litre Glanbia supplier about €850 short on his or her October milk cheque beneath the figure the Ornua price indicates.”
He questioned how it is possible for the biggest milk processor in the state to be 2.5c/l below the price that the index shows, and outlined that the indicators show an upward trend.
The ICMSAare calling on Glanbia to "immediately raise the October milk price to that level".
Read more
Farmers expect co-ops to increase milk price – IFA
Higher powder returns see Ornua PPI rise in October
Lakeland Dairies sets October milk price
Glanbia sets milk price for October
Glanbia’s decision not to change their October base price, which is set at 27.5c/l excluding VAT, has been described as “inexplicable” by Ger Quain, Irish Creamery and Milk Suppliers Association (ICMSA) chair.
The comment comes as Ornua adjusted their October price to 29.88c/l (excluding VAT). He has now called on the board of Glanbia Ireland to immediately review its decision.
They are actually paying a price for the milk itself that is a full 3.5c/l below the Ornua index
Ger Quain said the decision completely ignores recent strong climbs in the Ornua PPI on which all co-ops base their farmer milk price.
“Remember that even when 29c/l, which is 2.5c/l below the Ornua price, is calculated by Glanbia Ireland to include a so-called ‘support payment’ of 1c/l. So they are actually paying a price for the milk itself that is a full 3.5c/l below the Ornua index and below what the market is currently returning.”
Anger
Quain said: “Glanbia suppliers have been in contact with ICMSA to express their anger at the decision and I have to say that I think they’re fully entitled to feel that anger.
"It’s worth noting that this price now leaves a 400,000-litre Glanbia supplier about €850 short on his or her October milk cheque beneath the figure the Ornua price indicates.”
He questioned how it is possible for the biggest milk processor in the state to be 2.5c/l below the price that the index shows, and outlined that the indicators show an upward trend.
The ICMSAare calling on Glanbia to "immediately raise the October milk price to that level".
Read more
Farmers expect co-ops to increase milk price – IFA
Higher powder returns see Ornua PPI rise in October
Lakeland Dairies sets October milk price
Glanbia sets milk price for October
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