Oct 13th, 2009

ICMSA demands 2.1 cents per litre back payment from Glanbia and other Co-ops

In light of the decision of the Irish Dairy Board to increase its price by 2.1 cents per litre for September, Mr. John O'Leary, Deputy President and Chairperson of ICMSA's Dairy Committee said that Glanbia should immediately change its decision not to increase the September milk price as there is now a clear basis for a milk price increase. In fact, ICMSA is seeking a back payment of 2.1 cents per litre for milk supplied in September.

Relative to other Co-ops and given that Glanbia is the largest processor in Ireland with a good product mix, their price has been very poor in 2009. The Glanbia Board was the first to lead milk price down when markets were deteriorating and they must not be the last to raise it.

The Glanbia Board needs to recognise the pressures on farmers at this time and increase the milk price in line with the improved returns. It is quite clear that market returns have improved across all products and the Glanbia Board must now act by increasing their milk price retrospectively. Farmers are under enormous pressure and simply cannot wait another month. Markets have improved and this must be immediately returned to dairy farmers, said Mr. O'Leary.

Arrabawn and other Co-ops who have already set their September milk price must also review their decisions while those yet to set the price must include the increased returns in the milk price paid to farmers, concluded Mr. O’Leary.

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