By Farmers Weekly staff
GLANBIA, the financially troubled Irish dairy processor, has cut milk prices by 3p/gal (0.5ppl), setting off a revolt by producers.
The reduction will save the processor IR9 million (7m) a year, and so cheer investors at a time when its share price has been taking a battering.
But suppliers who picketed the company headquarters in Kilkenny while the board was taking its decision fear the cut will be matched by other processors, like Dairygold and Golden Vale.
Glanbia, which dominates the Irish market taking 1.35bn litres annually, blames rising labour and energy costs for the cut.
Another crucial factor is that milk from Northern Ireland, where farm-gate prices are 14p/gal (2.5ppl) cheaper, is taking an increasing share of the supermarket sector in the Republic.