"Because FMP (farmer representatives) and our (Glanbia's) liquid milk business agreed to base the liquid price on the manufacturing price a few years ago, liquid suppliers have been badly affected by the downtown in the markets. The downturn in the markets has been reflected in the consumer price and in the farmer's own income levels," Henry Corbally said.
Corbally was speaking at the opening of Glanbia's new UHT processing plant in Lough Egish, Co Monaghan, on Friday.
This week the Irish Farmers Journal revealed that autumn calvings in the dairy herd have fallen by 10% in the four years between 2012 and 2015. Corbally said the drop in autumn calvings does not necessarily mean a drop in the overall liquid milk pool.
"It's hard to call much from the calving figures," Corbally said.
"It was 10% over five years... That could be seen as a lot or it mightn't be seen as that much because we probably have higher productivity now that the quotas are gone. The amount of milk available over the winter is actually rising. What I think is more important is that we have a dedicated pool of liquid suppliers because its not just milk we wantover the winter, it's quality milk and fresh milk.
"I think a lot of people who are committed to the liquid milk business because it suits their farming system. Their profit levels need to be very closely monitored and managed in a new non-quota environment whereby liquid people can get on a par with manufacturing milk suppliers for profit levels... There is a good amount of very large, very successful, pioneering farmers who are milking the whole year around, and are doing an excellent job," Corbally added.
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