Glanbia Group plc., the milk supplier which controls half the national market and has a 70 per cent share in Dublin, has revised its decision to replace the one-pint carton of milk with a half-litre carton.
The move follows yesterday’s announcement that the company planned to change over to the metric system which would see consumers paying the same price for 13 per cent less milk.
However, the Minister for Consumer Affairs, Mr Kitt, intervened in the dispute yesterday and following contacts earlier this morning, Glanbia announced that there would be no price increase.
Yesterday, the Irish Creamery Milk Suppliers Association (ICMSA), supported Glanbia in the dispute saying that wage increases arising from the PPF and other factors since January 2000 have increased by 19.8 per cent and that, in the meantime, the price of milk had remained static.
"However, the price of a litre of milk as officially recorded by the CSO has remained virtually unchanged since January 2000 at 64 pence per litre," Mr Pat O’Rourke, president of the ICSMA said in a statement yesterday.
"The packaging and price adjustments introduced by Glanbia are fully justified. Does SIPTU expect the consumer to believe that wages can increase without the cost being transferred to the consumer," he asked.
Mr Kitt welcomed the decision of Glanbia to cancel its plans. The company also said it would also honour its commitments in relation to the introduction of the euro.
In a statement, Glanbia plc Group Managing Director, John Moloney said that the planned introduction of the new half litre carton has regrettably been linked to the Euro changeover whgen in reality this issue had nothing to do with it.
"We are fully committed to an orderly Euro changeover process for all products, with full clarity for consumers," Mr Moloney said in a statement.
"Recognising public demand, we have decided at this time to continue to make available the one pint carton.
"We reiterate that our one litre and two litre products, which account for almost 90% of our fresh milk production, had never been affected by this issue."
"Glanbia apologises to its customers and consumers for any confusion on this matter."