Agriland has been informed that Glanbia has agreed to offer its Fresh Milk Producers (FMP) an extra 1 cent per litre, covering the period April, May and June. In addition, the lower end of the working bandwidth has been increased by two cent, from 27 cent to 29 cent.

“It’s a three month deal, which will see the ongoing implementation of the current agreement between the co-op and FMP. This is due to run through to early 2016,” FMP Chairman Denis Fagan commented.

“So, it’s still very much a work in progress. The Glanbia management has also made it clear that it wants to discuss the details of a new post 2016 agreement. But, again, this is very much work in progress.”

The Co Meath dairy farmer went on to confirm that 500 FMP members attended a meeting held in Naas on Monday evening of this week. The group membership extends to 1,100 farmers.

“There was a lot of anger expressed at the meeting regarding the general lack of recognition paid by processers to the extra production costs incurred by liquid milk producers,” Denis Fagan further explained.

“The reality is that our members require a price of 40 cent at the present time to cover their costs and to allow them invest in the future of their businesses.

“We are currently getting 38 cent.”

Glanbia Vice Chairman Henry Corbally spoke at the Naas meeting and, subsequently, fielded questions.

“Mr Corbally would have come away from Naas with a clear perspective on the anger and frustration felt by FMP members at the present time,” Denis Fagan stressed.

“The one positive that came out of Monday night’s was the fact that the liquid milk price, and the need for Glanbia to be more flexible in the way they formulate it, is an issue that must be addressed on a regular and ongoing basis.”