Glanbia has announced Ireland’s longest-ever fixed milk price scheme, 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.

Farmer reaction

James F O’Connor, Monaghan

"If we were offered that price a few months ago with the milk price then we would have took it, but the price is going higher now. I can see why people take it; it takes the volatility out of their business.

"I would be against the feed discount part of it but again I can see why they are doing it. I can see other processors following suit."

Brendan Hickey, Kilkenny

"I am very much in favour of fixed milk schemes but five years is a bit too long. At 31c/l, it is coming in slightly under Glanbia’s 10-year previous average.

"For that reason, going forward they could do a bit better. Also it is my belief that feed and milk price should stand alone."

Mark Conors, Waterford

"The problem is, to get preferential treatment you have to sign up to buy your meal, which is a very dangerous treatment of farmers.

"It is sad that they have to link milk and feed."

Gerard O’Connoll, Cork

"How can you give €30/t back? It seems crazy to me. Are current ration prices overpriced that they can do that?

"Also, at 29.33c/l, it doesn’t show much confidence for the future. While it may be the best option, it certainly doesn’t fill me with optimism."

Kerry offering

Kerry is preparing to launch a three-year fixed milk price contract, also at 29.33c/l, excluding VAT (31c/l including VAT).

Read More

Listen: 31c/l fixed milk prices schemes from Glanbia and Kerry

Listen: should Glanbia farmers commit to a five-year milk price?

Milk prices increase this week