News milk prices
Irish dairy farmers furious at lower milk price
The idea of the Irish dairy cooperatives Glanbia and Lakeland Dairies to lower the milk price has fallen on the farm's dairy farmers.
Dairy Glanbia, who with A-ware a cheese factory in Ireland, the milk price for March decreased by €0,01 to 30,50 euro cents per liter of milk (including VAT, at 3,6% fat and 3,3% protein). Lakeland Dairies had made a similar cut. A striking detail is that Glanbia was still almost at the top of the LTO milk price comparison was standing.
Wrong decision
The lower milk prices of the dairies are angering the suppliers of the dairy processors. Tom Phelan, president of the Irish Farmers Association (IFA) speaks of an incorrect decision that is hurting dairy farmers. "Due to the spring work, an expensive period is beginning for dairy farmers, while production costs have already risen in any case." According to Phelan, the liquidity position of dairy farmers is now in danger.
In the Irish media, Martin Keane, the chairman of Glanbia, reacts to the lower milk price. According to him, this reduction is indeed appropriate. Although global production is lower than in the same period last year, Keane sees several causes that are (potentially) putting pressure on the dairy market. He mentions, among other things, the trade war, Brexit, rising oil prices and lower economic growth in various parts of the world.
Irish milk production sharply higher
The ample milk supply in Ireland probably also plays a role in the background, although Keane does not mention this. At some dairies, the supply in the first quarter of 2019 was almost 15% higher than in the same period last year. Irish milk production is expected to reach 8 billion liters this year. That is well above the target set a few years ago for 2020 has been formulated.
Wouter Job
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