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The credibility of the Irish Farmers Journal/KPMG milk price review is damaged by the inclusion of Glanbia’s trading bonus scheme as part of its milk price in 2018, according to the IFA.
IFA dairy chair Tom Phelan said the review, which provided price transparency, was the envy of dairy farmers all over Europe but KPMG was wrong to include Glanbia’s trading bonus.
Phelan said: “The trading bonus scheme offered by Glanbia to farmers in 2018, which continues this year, is undoubtedly valuable to farmers. However, it is paid conditionally based on input purchasing decisions, not on milk production, and can therefore not credibly be passed off as part of the milk price.”
The IFA met with KPMG on three separate occasions to outline its objections to KPMG’s approach. Phelan welcomed confirmation by the Irish Farmers Journal that there would be a reassessment of the rules for 2019 production year.
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