Lakeland bosses set agri-industry pay-cut precedent

LAKELAND Dairies’ management have set a precedent for the rest of the dairy industry by sharing in the financial hit from the current milk price downturn.

With farmers forced to take a 2c/l milk price reduction for March deliveries as a result of the fallout from the Covid-19 crisis, and further price drops likely, senior management at Lakeland have taken a pay cut, believed to be in the region of 25pc.

“In solidarity with milk suppliers, Lakeland Dairies’ executive management decided in March that they would take pay cuts in view of the Covid-19 global pandemic and its impact on global dairy markets,” the co-op confirmed.

However, other dairy processors were not as forthcoming when asked if senior management pay cuts were planned.

A Dairygold representative did not respond when asked by the Farming Independent if senior management salaries were being reduced in line with milk price cuts.

Ahead of 2c/l milk price cut for March supplies Dairygold stated that its board and management were “doing everything possible to mitigate the consequences” of the Covid-19 crisis, adding that “unfortunately milk price adjustments are necessary at this point”.

Glanbia did not directly address the issue of salary reductions when asked by the Farming Independent, but said it was taking the “necessary steps to contain costs during the pandemic” and was “monitoring the situation on an ongoing basis”.

A spokesman for Kerry Group confirmed that no salary cuts were planned for senior management. Meanwhile, Arrabawn did not respond to queries.