This article in the Irish Times today.
This is not the way to go metric and it is just fuel for the BWMA and for
the Irish Anti Metric League. Half liter milk cartons for the price of pint
cartons and the company Glanbia stating that this is done because the cost
of the half liter cartons is too high.
What should consumers do? Buy milk in liter cartons! In the Netherlands we
have also half liter cartons but they are expensive and I doubt that many
people buy them; they buy liter cartons instead. The article states that the
selling of pint cartons has fallen to 13%,

Han



Kitt issues warning after Glanbia price rise


By Sean MacConnell, Agriculture Correspondent
The Minister for Consumer Affairs, Mr Kitt, intervened in the Glanbia milk
controversy yesterday and warned companies they should be upfront with
consumers and not seek to blame price rises on irrelevant factors.

He was commenting on the decision by Glanbia, the largest liquid milk
processor in the State, to replace its one-pint milk packs with half-litre
packs which contain 62 ml less milk at the same price.

Mr Des Geraghty, the SIPTU president who raised the issue, said the
management at Glanbia had claimed this was a move from imperial to metric
measurement which is reasonable enough. What is not reasonable is to
continue charging the same price.

"In effect this is a major price hike being disguised as part of the euro
changeover.

"If this practice were to become widespread, then virtually every commodity
will rise in price thereby increasing costs for all consumers and this will
drive up inflation," he said.

But yesterday, a spokesman for Glanbia denied the issue had anything to do
with the changeover to the euro, and said it was to do with the change from
the imperial system to metric.

Mr Michael Patton said there were additional costs involved in producing the
smaller packs for the half litre and that was the reason for the price
increase.

"Our other sizes of milk cartons, litre and two-litre packs, will not be
increasing in price and they represent 87 per cent of our liquid milk sales.
Pints only represent 13 per cent of our business," Mr Patton said.

He said the argument that those who purchased milk in pint cartons did so to
prevent milk going off, were wrong. He said a litre of milk would remain
fresh in a fridge for seven days.

But last night Mr Kitt said the consumer needed to be aware what Glanbia had
done represented a significant increase in the price of milk which was not
influenced by outside factors, but was at the discretion of the company.

"Indeed there is a moral obligation on the company to make this abundantly
clear in any announcements they make about the matter. I would have hoped
that if the company thought it necessary to rationalise their production
size this way, the responsible thing would have been to also adjust prices
accordingly," he said.

"However, it is a matter for the consumer to decide whether or not in the
light of this increase they wish to continue to purchase the company's
product or perhaps switch to buying different units such as a litre or
two-litre pack."

Ms Deirdre Clune, the Fine Gael spokeswoman on environmental and consumer
protection called on the Government to empower the Director of Consumer
Affairs to protect consumers from price increases because of the euro
changeover which must not be used as an excuse for "ripping off" consumers.

Mr Pat Rabbitte, Labour's spokesman on enterprise, trade and employment,
called for a price freeze to protect consumers from unjustifiable increases
because of the introduction of the euro.

The Glanbia decision was also criticised by RGDATA, representing the grocery
trade. A statement said it was appalled Glanbia had used the introduction of
the euro to increase prices to consumers.

However, the Irish Creamery Milk Suppliers' Association came out in support
of Glanbia and said its actions were completely justified in light of wage
increases and other factors which had seen the price of milk remain
unchanged since January 2000.

"All the social partners must face economic reality. The reality is that
wage increases have outstripped productivity and therefore prices will have
to increase. The price adjustments introduced by Glanbia are inadequate to
cover the increased costs faced by farmers.

"In the past decade, the price paid to farmers has fallen significantly in
real terms," said Mr Pat O'Rourke, the ICMSA president.



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