Director of Strategy at Glanbia Ingredients Ireland Limited (GIIL), Sean Molloy, was asked some searching questions by some angry suppliers such as:
Why GIIL milk price was well down in the 2013 KPMG milk price review?
Why GIIL always lead the price down?Why farmers who haven’t signed the a GIIL milk contract won’t get the 0.5 c/litre milk price bonus?Sean Molloy responded by suggesting part of the reason for the poor performance last year was solely his fault because a good fraction of the difference between some of the other processors was due to the fixed price scheme that GIIL offered to suppliers.
He also said, “when comparing milk prices make sure you are comparing like with like. We understand there is a big responsibility on us when we set the price first each month but we like to think we lead it up when market returns allow. We are now able to put aside a fund to help farmers when milk price is poor – we couldn’t do that previously when Glanbia PLC was in control, and we have said from the start that we reward loyalty so hence those that sign the milk contract get the bonus.”
In addition Mr Molloy said that 94% of GIIL suppliers had signed the contract but he was troubled that 6% hadn’t signed the contract and he didn’t regard it as a good place to be. He said, “We need to work on this and understand the issues.”
One farmer responded from the floor suggesting that it was bully boy tactics and blackmail. “Not to pay the bonus to all suppliers is blackmail and you can dress it up anyway you like but it was leaving the door wide open for milk to flow out of GIIL to other processors," the farmer said.
See this week’s Irish Farmers Journal for a full report on the "The Business of Dairy Farming post-2015" IFA conference.
Director of Strategy at Glanbia Ingredients Ireland Limited (GIIL), Sean Molloy, was asked some searching questions by some angry suppliers such as:
Why GIIL milk price was well down in the 2013 KPMG milk price review?
Why GIIL always lead the price down?Why farmers who haven’t signed the a GIIL milk contract won’t get the 0.5 c/litre milk price bonus?Sean Molloy responded by suggesting part of the reason for the poor performance last year was solely his fault because a good fraction of the difference between some of the other processors was due to the fixed price scheme that GIIL offered to suppliers.
He also said, “when comparing milk prices make sure you are comparing like with like. We understand there is a big responsibility on us when we set the price first each month but we like to think we lead it up when market returns allow. We are now able to put aside a fund to help farmers when milk price is poor – we couldn’t do that previously when Glanbia PLC was in control, and we have said from the start that we reward loyalty so hence those that sign the milk contract get the bonus.”
In addition Mr Molloy said that 94% of GIIL suppliers had signed the contract but he was troubled that 6% hadn’t signed the contract and he didn’t regard it as a good place to be. He said, “We need to work on this and understand the issues.”
One farmer responded from the floor suggesting that it was bully boy tactics and blackmail. “Not to pay the bonus to all suppliers is blackmail and you can dress it up anyway you like but it was leaving the door wide open for milk to flow out of GIIL to other processors," the farmer said.
See this week’s Irish Farmers Journal for a full report on the "The Business of Dairy Farming post-2015" IFA conference.
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