Kerry Group and Glanbia, the Irish-based food companies, have cut Irish milk prices for September.
Kerry Group has cut prices by 3 cent per litre to 32 cent, and Glanbia has cut prices by 2.5 cent per litre to 30.5 cent, according to a report in the Irish Independent.
This will result in a massive cut in income for dairy farmers. Base prices to farmers have fallen by 6-7 cent per litre from a high of 39 cent per litre in April. This is equivalent to an 18-per-cent price cut in five months.
Pat McCormack of the Irish Creamery Milk Suppliers' Association (ICMSA) said that the reductions were undermining farmer confidence at a time when the industry was investing heavily in expansion plans.
Glanbia Co-op has said that it will pay a 0.5-cent-per-litre patronage bonus on all 2014 milk supplied, and that there would be no further price reductions in 2014.
According to the paper, industry sources have defended the latest price cuts, saying that they reflect the continued weakness in international markets.
© 2014 European Supermarket Magazine – Europe’s grocery retail magazine, for all your breaking supermarket, convenience-store and FMCG news. Article written by Nicole Gernon.
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