Fresh Milk Producers (FMP) chair Willie Lennon has condemned Glanbia for cutting its January base milk price.
A 0.4c/l bonus paid in December will not be paid in January, meaning the farm gate price paid by Glanbia will in effect be down 0.4c/l.
Lennon said: “Once the reality of the milk price cut filters through to these suppliers following the contemptible spin on milk price, a huge amount of anger and utter disgust will build up towards Glanbia.
“No milk supplier should have taken a milk price cut for January but that is what Glanbia have done to over 850 family farms with this January milk price decision.”
Need for clarity
Glanbia supported a bonus of 0.4c/l throughout 2020. It was indicated in November that this support would not be in place to prop-up a poor base price in 2021 unless absolutely necessary.
Lennon continued: “To allow a price reduction when the GDT auction results continue to improve, the Ornua index indicates an increased pay out, and the overall market outlook is increasingly positive was a cynical move.
“The underhandedness of how Glanbia has attempted to hoodwink its own suppliers about this price cut is also completely unacceptable.”
The FMP chair also highlighted that the Glanbia January price announcement failed to state that the base price was reduced and where premium payments remained static, suppliers would face a net price cut for January.
“To add insult to injury, Glanbia failed to pass back the flat rate addition VAT to farmers. This VAT rate increased from 5.4% to 5.6% on 1 January and should have been passed back to farmers. It is in effect, another stealth cut to milk price by Glanbia,” Lennon said.