Glanbia farmers seek to dual supply other dairies

Neighbouring dairy processors have received a flood of calls from Glanbia farmers

Declan O'Brien

April 06 2021 08:35 AM

Glanbia farmers are seeking to become dual suppliers to other dairies as they battle to circumvent the impact of peak milk controls which were recently introduced by the Kilkenny-based co-op.

Neighbouring dairy processors have received a flood of calls from Glanbia farmers who are looking to continue expanding by delivering a proportion of their supply between April and June to neighbouring processors.

Such a move would enable the farmers to side-step penalties that might be levied by Glanbia on milk delivered at peak.

While Dairygold, Lakeland Dairies and Aurivo did not answer when asked directly by the Farming Independent if approaches had been made to them by Glanbia suppliers, one industry insider insisted that “a lot of calls were being made”.

Another well-placed source in the dairy sector claimed that board members at the various co-ops were being approached by Glanbia suppliers who were desperate to keep expanding.

Ruairí Cunningham of Strathroy Dairies confirmed that the company had received numerous calls from Glanbia farmers since the announcement of peak milk supply restrictions by the country’s largest processor.

He said the company was not really interested in most instances as the calls were from “spring calving lads”.

A Dairygold spokesman said the co-op recognised “the challenges Glanbia faces”, and added that it “will continue to offer whatever assistance we can at a corporate level”.

Lakeland Dairies said it “doesn’t comment on the business or operations of other dairy processors”, while Aurivo said the co-op has a policy of “not discussing matters that are potentially commercially sensitive”.

Northern suppliers

Meanwhile, the ICMSA has criticised Glanbia’s decision to impose the peak milk supply controls in the Republic of Ireland, while leaving dairy farmers in the North free to expand without any restrictions.

Making distinctions between suppliers and showing favouritism to areas or groups, “whatever the rationale”, will almost certainly aggravate an already tense situation, said ICMSA leader Pat McCormack

Mr McCormack said farmers in Glanbia’s ‘Southern’ base will be entitled to object to such a move.

The decision will lead to “exactly the kind of anomaly” that ICMSA had already warned against, he added.

“Peak production restrictions are a bad idea in their own right and every tweak that follows and tries to make sense of the original bad idea generally makes it worse. This is a perfect example of that process,” said Mr McCormack.

A spokesman for Glanbia defended the exclusion of Northern Ireland from the peak milk supply restrictions.

He pointed out that milk supply to Glanbia in the North had not grown to the same extent over the last few years as deliveries in the South.

“There is a far flatter supply profile in the North as well,” he added.