The Irish Creamery Milk Suppliers Association (ICMSA) has welcomed Glanbia’s announcement of a Fixed Milk Price Support (FMPS) scheme. This aims to assist suppliers who entered large supplies of milk into fixed price schemes at a rate of payment considerably lower than recent monthly base prices.
ICMSA president, Pat McCormack says “there is growing and unprecedented pressure on dairy farmers who locked into these contracts in the last number of years as costs of production have skyrocketed in the last number of months.” However, the farm organisation says it will seek clarity that buyers of Glanbia’s processed milk have shown similar flexibility with the processor.
According to McCormack, ICMSA members had been contacting the organisation “for weeks” in large numbers outlining the impending losses they will face in the coming year. He adds that “it is vital that farmers do not go to the wall because of fixed price contracts.”
In its attempt for more clarity on the venture, the ICMSA is expected to meet with Glanbia soon to discuss the terms and conditions of the Fixed Milk Price Support scheme in greater detail. McCormack warns that there is a real danger that these farmers could exit the industry as they simply cannot make ends meet. The farm organisation said it will ask Glanbia if its customers further up the supply chain have shown flexibility.
Meanwhile, the milk processor said it is “very conscious of the significant challenge that some suppliers are facing as a result of the volume of milk contracted under Fixed Milk Price Support scheme”. According to Glanbia Ireland’s chief agribusiness growth officer, Sean Molloy the board of Glanbia Ireland have agreed on a number of voluntary options to help support participants.