Arrabawn and Aurivo have withdrawn from participating in the KPMG/Irish Farmers Journal annual milk price review.

Both processors indicated that they want the money they pay out for “liquid” milk to be included in the manufacturing milk price review. The annual manufacturing milk price review divides the money paid out on all manufacturing milk to all suppliers divided by the total manufacturing litres collected.

It excludes contracted liquid milk and money paid out for liquid milk.

Chair of Arrabawn, Edward Carr, called for criteria for the annual milk price review process to be changed in the interest of transparency in a letter sent to the 1,000 Arrabawn suppliers last week, while Aurivo chief executive Donal Tierney said it was the “correct decision for the co-op given what we firmly believe is the flawed nature of a ‘manufacturing milk’ league table that excludes fresh milk sold for domestic consumption”.

Reaction

IFA dairy chair Tom Phelan said that the review is a valuable independent measurement of true milk prices and makes a “major contribution to transparency in milk pricing”

“To ensure a comprehensive, transparent analysis of milk pricing in Ireland is available to all dairy farmers this year again, I urge all parties involved to ensure full participation by all co-ops,” he said.

Imelda Walsh, north Tipperary IFA chair and Arrabawn supplier, said: “As a supplier, farmers are entitled to full transparency and I hope Arrabawn will be back in the KPMG milk price review.

“It’s important that suppliers can compare and contrast what’s happening in other co-ops.”