Every supplier supplying more milk than when quotas were abolished should have to pay the old Waterford co-op suppliers a minimum of 40c/l in order to fill their new quotas.Was 30 years of quota restrictions not enough? It destroyed a generation of farmers and farming, together with the poverty it trapped the family in. This appeals fund is their “get out of jail clause” but it might only end up as a dribble to the number of cases looking for change?
This is not just about the Royal A-ware plant. If that had been built, we would still have been overrun with milk in 2024. This is only coming out now, when we have reached crisis point. Suppliers should have had a warning and measures should have been put in place last year to slow things down, to slow investment on farm, to allow farmers avoid signing land leases or putting in unnecessary infrastructure.
New entrants and growth milk has been taken on at no cost for the last six years. As we moved closer to a pinch point, the board should have introduced measures to slow this down - stainless steel charge or share-up etc. This would have put a fund in place for expansion or slowed milk coming on board.
Has the board had independent legal and financial advice on the best route forward for GII from the milk supplier/co-op point of view or, is most advice coming from internal sources with some plc crossover? In particular here I am referring to the policy of maintaining the 3.2% profit after tax (PAT) and growing the milk processing business to the point of overheating, which is what has essentially happened. Is the policy of dictating PAT margin at the start of every year even legal?Have the board and management failed in particular to prioritise the interests of the original cohort of milk suppliers and co-op shareholders that allowed their stake in the plc to be liquidated to facilitate expansion? These suppliers had their hard-earned assets used to the benefit of others and are, in some cases, excluded themselves now from access to this infrastructure. The 3.2% PAT margin is extremely high, especially with the context of extreme growth in milk supply and milk processing facilities. This is being maintained purely to increase the value of the plc’s stake in GII. It is compromising GII’s ability to pay a competitive milk price. It must be reduced to share the cost of this situation with the milk suppliers. Should GII milk suppliers still have confidence in the board and management to find the best way forward for the business?Farmers should be extremely concerned that an unelected body can interfere in Irish agriculture in this way.Glanbia taking on new suppliers in the past year knowing full well that there was issues coming down the road. Now putting huge financial and mental stress on new entrants.
We as dairy farmers are doing an excellent job on the whole at growing our business. This includes a high six-week calving rate, investing in grazing facilities to getting cows out to grass as early as possible, adhering to environmental measures at present and going forward, having enough slurry storage, incorporating clover into swards, using less equipment etc. With input costs continuously on the rise, milk price has remained static over the years. A spring-based dairy system is the most profitable system in Ireland and this latest announcement by Glanbia will really put dairy farmers going forward from making a decent living for their families. I think this issue if it’s allowed come to fruition is creating a very dangerous precedent and I would urge Glanbia to engage with farmers and farm organisations regarding this urgent matter. Co-operatives are people-centred enterprises owned, controlled and run by and for their members to realise their common economic, social and cultural needs and aspirations. Co-operatives bring people together in a democratic and equal way. I hope Glanbia and board members remember what this actually stands for.It’s a little ironic that the Glanbia connect website is not working correctly and I can’t download my milk supply agreement. Two of us have been trying since last Thursday.
Milk forecasts were very clear through the farmer surveys. Extra milk should not have blind-sided us. At the very least this issue should have been flagged to suppliers much earlier, instead of this 11th hour announcement. This would have given suppliers time to plan the future of their own businesses (something Glanbia management obviously do not do) and would have given the co-op a chance to debate the best solution as opposed to having such draconian measures imposed on us. Remember we are a co-op, not a private company.
Every supplier supplying more milk than when quotas were abolished should have to pay the old Waterford co-op suppliers a minimum of 40c/l in order to fill their new quotas.Was 30 years of quota restrictions not enough? It destroyed a generation of farmers and farming, together with the poverty it trapped the family in. This appeals fund is their “get out of jail clause” but it might only end up as a dribble to the number of cases looking for change?
This is not just about the Royal A-ware plant. If that had been built, we would still have been overrun with milk in 2024. This is only coming out now, when we have reached crisis point. Suppliers should have had a warning and measures should have been put in place last year to slow things down, to slow investment on farm, to allow farmers avoid signing land leases or putting in unnecessary infrastructure.
New entrants and growth milk has been taken on at no cost for the last six years. As we moved closer to a pinch point, the board should have introduced measures to slow this down - stainless steel charge or share-up etc. This would have put a fund in place for expansion or slowed milk coming on board.
Has the board had independent legal and financial advice on the best route forward for GII from the milk supplier/co-op point of view or, is most advice coming from internal sources with some plc crossover? In particular here I am referring to the policy of maintaining the 3.2% profit after tax (PAT) and growing the milk processing business to the point of overheating, which is what has essentially happened. Is the policy of dictating PAT margin at the start of every year even legal?Have the board and management failed in particular to prioritise the interests of the original cohort of milk suppliers and co-op shareholders that allowed their stake in the plc to be liquidated to facilitate expansion? These suppliers had their hard-earned assets used to the benefit of others and are, in some cases, excluded themselves now from access to this infrastructure. The 3.2% PAT margin is extremely high, especially with the context of extreme growth in milk supply and milk processing facilities. This is being maintained purely to increase the value of the plc’s stake in GII. It is compromising GII’s ability to pay a competitive milk price. It must be reduced to share the cost of this situation with the milk suppliers. Should GII milk suppliers still have confidence in the board and management to find the best way forward for the business?Farmers should be extremely concerned that an unelected body can interfere in Irish agriculture in this way.Glanbia taking on new suppliers in the past year knowing full well that there was issues coming down the road. Now putting huge financial and mental stress on new entrants.
We as dairy farmers are doing an excellent job on the whole at growing our business. This includes a high six-week calving rate, investing in grazing facilities to getting cows out to grass as early as possible, adhering to environmental measures at present and going forward, having enough slurry storage, incorporating clover into swards, using less equipment etc. With input costs continuously on the rise, milk price has remained static over the years. A spring-based dairy system is the most profitable system in Ireland and this latest announcement by Glanbia will really put dairy farmers going forward from making a decent living for their families. I think this issue if it’s allowed come to fruition is creating a very dangerous precedent and I would urge Glanbia to engage with farmers and farm organisations regarding this urgent matter. Co-operatives are people-centred enterprises owned, controlled and run by and for their members to realise their common economic, social and cultural needs and aspirations. Co-operatives bring people together in a democratic and equal way. I hope Glanbia and board members remember what this actually stands for.It’s a little ironic that the Glanbia connect website is not working correctly and I can’t download my milk supply agreement. Two of us have been trying since last Thursday.
Milk forecasts were very clear through the farmer surveys. Extra milk should not have blind-sided us. At the very least this issue should have been flagged to suppliers much earlier, instead of this 11th hour announcement. This would have given suppliers time to plan the future of their own businesses (something Glanbia management obviously do not do) and would have given the co-op a chance to debate the best solution as opposed to having such draconian measures imposed on us. Remember we are a co-op, not a private company.
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