DAIRY FARMERS supplying Glanbia, Ireland's biggest milk processor, have given the company a fortnight to refund a 1.5 cent per litre price cut it imposed on them last month.
Over 700 of the 5,000 milk suppliers to the company met in Dungarvan, Co Waterford, this week to demand the cut be refunded and Glanbia revert to being the top milk price in the country.
President of the Irish Farmers Association Padraig Walshe said that 10 years ago, Glanbia gave farmers a commitment to pay one cent per litre more than anyone else in the business to get dairy farmer support when the company was being formed. "After the first three years, Glanbia have used their dominant position with one- third of the national milk pool, and a captive supply, to pay a milk price as low as they could get away with," Mr Walshe said.
"Glanbia suppliers voted in favour of merging Avonmore and Waterford to form a more efficient and better diversified company which could use its larger scale to compete on the domestic and international markets, and return strong milk prices to its supplier shareholders," he said.
"Ten years on, Glanbia Plc now clearly prioritises the interests of the stock market, [which was] guaranteed double-digit profit growth for 2008, [achieved by] seeking to purchase milk as cheaply as possible," he added.
IFA dairy committee chairman Richard Kennedy said the average Dairygold supplier will now receive €600 more than the average Glanbia supplier for milk supplied in June.
"There is an absolute onus on Glanbia board members to deliver on the refund of their unjustified 1.5 cent price cut, and on their commitment to address the price gap once and for all," he said.
Mr Kennedy indicated that farmers may picket the company unless the matter is resolved.