The new cheese factory in Ireland that the dairy companies Glanbia and A-ware want to build together continues to keep people busy. Due to the delay in the factory's completion, Glanbia wants to introduce a scheme to limit the peak production of its member dairy farmers next spring. Not everyone agrees.
Glanbia wants to build a cheese factory in Belview in a joint venture with A-ware, but has encountered a lot of legal resistance from environmental group An Taisce. As a result, the delivery of the factory is delayed. The dairy consortium is also awaiting a positive ruling from the judge. The factory had already been counting on the factory for the processing of the growing milk flow in the coming years, which means that there is a threat of a surplus of milk for Glanbia.
Discount on milk price
In March Glanbia came up with the proposal to set a temporary ceiling in the months of April, May and June of 2022. With this, the dairy wants to better manage the growth of the milk supply in these peak months and to avoid capacity problems at the current factories. For example, suppliers who supply too much milk are reduced by 30% on the milk price.
This is to the dissatisfaction of dairy farmers, who feel that the consequences of the current problems cannot be fully passed on to them. Tim Cullinan, the president of the Irish Farmers' Association (IFA), is calling for Glanbia and the Irish government to both take responsibility for mitigating the impact of the supply measures.
Don't punish, but cooperate
Cullinan points to Glanbia's milk regulations, the 'Glanbia's Milk Supply Agreement', which states that the guaranteed price is always paid regardless of milk production. According to him, the announced discount on the milk price in the peak months of next spring is not in line with these regulations.
The IFA is urging Glanbia to solve the problem by working with the dairy farmers instead of punishing them. Cullinan is arguing for expanding the plan to voluntarily reduce milk production during peak months. This would then have to be paid by Glanbia Ireland.
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