This article is from page 40 of the 2009-02-17 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 40 JPG
HUNDREDS of Clare farmers are facing into a large cut in their income following the decision last week by Kerry Group to slash the price they pay for milk.
Farm leaders have reacted with an- ger to the decision by Kerry Group PLC to cut its milk price by four cents per litre to just 25 cents per litre. This cut now means that the overall price paid to farmers for their milk has now fallen by 14 cents per litre since January of 2008.
According to Clare farmer and IC-
SMA Cattle and Sheep chairperson Martin McMahon, an average Kerry supplier of 250,000 litres (55,000 gallons) will now loose €35,000 ona full year’s milk production and over €1,000 on January milk alone.
The Clare ICMSA spokesman not- ed that farmers are now very close to producing milk below the actual costs of production for the first time.
‘Based on this price, dairy farming is facing a disastrous year and our milk processors and Government have a major responsibility to avert a crisis situation,’ he said.
“It is also important to note that
Kerry Group – like other input sup- pliers – have failed miserably to pass back the benefits of reduced input costs to farmers, particularly ferti- liser and feed costs.
“It is clear that the wholesale price of fertiliser and feed has fallen dra- matically but farmers have not seen the benefit of this and now, as a result of the board’s decision to cut milk price again, they are also receiving a disastrous price for their milk. This is a catastrophic double-whammy.”
Kerry Group had an annual profit in excess of €300 million last year and the ICMSA believe that this puts
them in a strong position to support farmers during this difficult period.
“Simply cutting milk price cannot be the solution and Kerry must now use its vast resources to support milk price as well as passing back the ben- efits of reduced input costs to farm- ers,’ continued McMahon.
“The challenges facing dairy farm- ers at this time are extremely serious with mounting financial and other problems and Kerry’s suppliers have a right to expect some support from the Kerry Group whose prosperity has been founded on the efforts and work of their milk suppliers.”