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The cost of Glanbia’s expansion in milk processing is affecting its ability to pay farmers more for milk.
A succession of farmers questioned Glanbia executives at the Glanbia Co-op AGM on the milk price currently being paid.
Glanbia Ireland CEO Jim Bergin told farmers at the AGM that “investment in large-capacity processing is affecting the margin”.
Glanbia has invested €343m in capacity since 2013 to cope with an extra 908m litres of milk since quotas ended.
Bergin highlighted the €140m joint venture planned with Dutch company Royal A-ware as a way of achieving growth while protecting margins.
Brexit
He said a single dairy market for the island of Ireland requires identical standards and expressed doubt that a customs union would allow unfettered movement of milk across the island.
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