Milk war fears over GIIL plans

FEARS of milk war in the south of the country have intensified over the last week despite the major milk processors maintaining that they are solely interested in growing supplies from within their existing milk pools.

At regional meetings over the l as t f or t night, Glanbia Ingredients Ireland Limited (GIIL) proposed that no minimum shareholding in the co-op will be required by suppliers in the future.

This follows GIIL’s decision to remove the 2c/l expansion levy on all additional milk the processor receives after the abolition of milk quotas in 2015.

Given that neighbouring processors such as Dairygold and Arrabawn require farmers aiming to increase output post 2015 to purchase additional shares in their co-ops, GIIL’s move is viewed as offering a carrot to those dairy farmers who would consider moving.

However, management at GIIL has insisted that the processor’s focus remains on their existing suppliers.

“GIIL has begun the process of consultation with our milk suppliers in relation to the proposed GIIL milk supply agreements.

“In communicating with our 4,500 manufacturing milk suppliers we are making it clear that our firs t priority is to nurture and encourage the growth of our existing milk pool,” a GIIL statement insisted

A statement from Dairygold insis ted that 97pc of milk suppliers are with the co-op.

“Dairygold is looking forward confidently to the end of milk quota r es t r i c t i on,” t he Dairygold statement said.