Glanbia farmers are angry because their milk price expectations are not being met, according to IFA dairy chair Tom Phelan.
Glanbia increased the September base price by 0.4c/l to 29.4c/l, excluding VAT, while Lakeland increased by 1/cl to 30.36c/l, excluding VAT.
Glanbia Ireland chair John Murphy said: “Overall, dairy consumption and exports have been resilient with prices reasonably steady.
Not only has the price gap between themselves and their northern counterpart not been closed, but it has in fact widened
“However, the COVID-19 pandemic continues to impact on global markets and global economies, particularly in the foodservice sector,” he said.
Phelan said that while any price increase is welcome, Glanbia farmers are angry because their price expectations are not being met.
“Not only has the price gap between themselves and their northern counterpart not been closed, but it has in fact widened. Farmers are justified in asking why the Glanbia cannot pay this price,” he said.
IFA believes market trends are positive, highlighting that the two Global Dairy Trade (GDT) auctions are up 2.2% and 3.6% respectively while the Ornua total pay-out for September milk, including the Ornua value payment, increased by 1.3c/l.
It also noted that future contracts offered to Kerry suppliers for next year, March to October 2021, are set at 32c/l.
Phelan urged all processors meeting in the coming days to set milk price to reflect these positive trends and pay at least 1c/l more for September milk.
Kerry Group has maintained its base price for September milk at 29.4c/l excluding VAT.
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