Liquid milk farmers have not been insulated against the difficult dairy market, the chair of Glanbia, Henry Corbally, has said.

Corbally was speaking at the opening of Glanbia’s new UHT processing plant in Lough Egish, Co Monaghan on Friday.

“Because FMP [farmer representatives] and our [Glanbia’s] liquid milk business agreed to base the liquid price on the manufacturing price a few years ago, liquid suppliers have been badly affected by the downtown in the markets. The downturn in the markets has been reflected in the consumer price and in the farmers’ own income levels,” Corbally said.

This week, the Irish Farmers Journal revealed that autumn calvings in the dairy herd have fallen by 10% in the four years between 2012 and 2015. Corbally said the drop in autumn calvings does not necessarily mean a drop in the overall liquid milk pool.

“It’s hard to call much from the calving figures,” he said. “It was 10% over five years ... That could be seen as a lot or it mightn’t be seen as that much because we probably have higher productivity now that the quotas are gone. The amount of milk available over the winter is actually rising. What I think is more important is that we have a dedicated pool of liquid suppliers because it’s not just milk we want over the winter – it’s quality milk and fresh milk.

“I think a lot of people who are committed to the liquid milk business because it suits their farming system. Their profit levels need to be very closely monitored and managed in a new non-quota environment whereby liquid people can get on a par with manufacturing milk suppliers for profit levels,” he said.

Glanbia’s Lough Egish UHT facility represents an investment of €15m and will create 40 new jobs, half of which have been filled already. The new plant has a processing capacity of 100m litres of milk per annum, and will produce a range of standard and fortified UHT milk and cream products under the Avonmore brand.

Liquid Milk Committee

Meanwhile, the IFA Liquid Milk Committee will meet next Monday 23 November in the Killeshin Hotel, Portlaoise, to discuss liquid milk price negotiations.

Talks between farmers and co-ops are ongoing and the Liquid Milk Committee chairn Teddy Cashman said that while no price has been set, farmers are concerned with word coming from the talks.

“Liquid farmers need a unity of purpose at the minute. Base prices for liquid farmers are being cut in line with international markets when the liquid supply is a domestic. The markets are different and farmers need to be informed,” Cashman said.