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Kerry And Glanbia Cut Milk Prices

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Kerry And Glanbia Cut Milk Prices

Kerry Group and Glanbia, the Irish-based food companies, have cut Irish milk prices for September.

Kerry Group has cut prices by 3 cent per litre to 32 cent, and Glanbia has cut prices by 2.5 cent per litre to 30.5 cent, according to a report in the Irish Independent.

This will result in a massive cut in income for dairy farmers. Base prices to farmers have fallen by 6-7 cent per litre from a high of 39 cent per litre in April. This is equivalent to an 18-per-cent price cut in five months.

Pat McCormack of the Irish Creamery Milk Suppliers' Association (ICMSA) said that the reductions were undermining farmer confidence at a time when the industry was investing heavily in expansion plans.

Glanbia Co-op has said that it will pay a 0.5-cent-per-litre patronage bonus on all 2014 milk supplied, and that there would be no further price reductions in 2014.

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According to the paper, industry sources have defended the latest price cuts, saying that they reflect the continued weakness in international markets.

© 2014 European Supermarket Magazine – Europe’s grocery retail magazine, for all your breaking supermarket, convenience-store and FMCG news. Article written by Nicole Gernon.

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