DEAR SIR:

In the 2009 milk price crisis, Glanbia dairy farmers were left completely exposed by the plc structure.

In the intervening years, farmer shareholders voted to transform the organisation to its present structure in the belief that the business could and would look after them if such a crisis occurred again. But we were fooled.

Let’s hope this insistence by Glanbia is not purely to support an already troubled set of plc accounts

Today, in this most unexpected and unusual crisis, Glanbia Ireland through its well-paid management team insists that it retains its annual 3.2% margin (€60m) while its milk suppliers continue to receive a falling milk price to an uneconomic level.

While Irish people in all sectors of society are doing their bit in this current war-like situation, Glanbia Ireland continues its business as usual.

Kerry Group and many international businesses are revising their forecasts for 2020. But Glanbia Ireland is defiant. Let’s hope this insistence by Glanbia is not purely to support an already troubled set of plc accounts.

Money trail

Looking at Jack Kennedy’s article in last week’s Irish Farmers Journal, “Follow the milk money trail: how farmers get paid for their work”, it’s incredible that Glanbia records around €60m profit on 2.4bn litres, which is about 2c/litre, and Dairygold records €9m on 1.3bn litres, which is approximately 0.7c/litre.

For those of us who live in the real world, the laws of economics apply to us all. This 3.2% profit margin can only have a negative impact on milk price.

Therefore, we are calling on the board of Glanbia to support its fellow farmers in these difficult and testing times by adjusting targets to reflect the reality of the income situation at farm level rather than the easy price-cutting option.