Co-ops that are paying less than 23cpl are “demonstrably underpaying” their suppliers, according to the ICMSA's Tipperary chairman.
Thurles-based Seamus Troy was speaking after Glanbia announced that it will pay its member suppliers 22 cent per litre (cpl) including VAT for June manufacturing milk supplies. This price is inclusive of a 2cpl Glanbia Co-operative Society support payment to its members.
Glanbia Ingredients Ireland (GII) has held its base price at 20cpl including VAT for manufacturing milk at 3.6 per cent fat and 3.3 per protein.
The board of Glanbia Co-operative Society has decided to pay its members a support payment of 2cpl (including VAT) for June manufacturing and liquid milk supplies.
However, Mr Troy said that, based on the “no-change” position in the Ornua Index for June, it was clear that there was no need whatsoever for any reductions in June milk price.
“Some milk processors - including our three largest, Glanbia, Dairygold and Kerry - are paying well below what the market currently justifies and this needs to be addressed,” he said.
Mr Troy noted that the gap between the best and worst paying Co-ops is very significant with suppliers of the bottom-paying processors becoming increasingly disillusioned by the attitudes displayed when the scale of the pressures on farmer-suppliers is well known.
“The question occurring to Tipperary farmers could not be more fundamental or urgent: When the Ornua index is demonstrably returning a stronger price why are our processors not returning this in full to their suppliers?” he said
See this week's Tipperary Star Farming section for full story