Glanbia has hit back at accusations its decision to charge the same price as a pint of milk for its new half litre carton is a ‘rip off.’
The company said the move, which will result in a 13 per cent increase in the price of milk for the consumer, was the a result of production increases and not the euro changeover.
The Minister for Consumer Affairs Mr Tom Kitt has said there was now a moral obligation for the company to clarify the issue.
"As we approach the introduction of the euro, there is understandable consumer concern that some companies may seek to benefit unjustifiably from the changeover, " said Mr Kitt.
"There is an onus on all companies, whether producers, processors wholesalers or retailers, to act responsibly in matters of this kind and consumers should not be taken for granted."
Various public figures have attacked the move, including Fine Gael’s consumer protection spokeswoman Ms Deirdre Clune TD. She said the move demonstrated "clearly how vulnerable the consumer is over the coming months" when it comes to the introduction of the euro.
"The introduction of the euro must not be used as an excuse for ripping off consumers, as this is a change from imperial to metric measurement and should not result in a price increase," she said
Labour Party’s Mr Pat Rabbitte said he was "absolutely shocked" at the move, and called for an immediate four month price freeze.
"If one of the biggest food producers in the country can get away with this, every other producer and retailer will be tempted to follow suit," said Mr Rabbitte.
SIPTU President Mr Des Geraghty called on Glanbia not to hide behind the euro changeover for any price increases.
"It is important that customers let the company know that they don't accept this. The Government should let them know that also, and I believe they should adjust the price downwards," he said.
So far one of the few organisations to support Glanbia has been the Irish Creamery Milk Suppliers Association (ICMSA).
"The packaging and price adjustments introduced by Glanbia are fully justified. The reality is that wage increases have outstripped productivity and therefore prices will have to increase," said Mr Pat O’Rourke, President of ICMSA.
"The price adjustments introduced by Glanbia are inadequate to cover the increased costs faced by farmers. In the past decade, the price paid to farmers has fallen significantly in real terms."