Glanbia to pay Members 31cpl for April milk

GII All Co-op Dairy

Glanbia will pay its member suppliers 31 cent per litre (cpl) including VAT for April manufacturing milk supplies.

Glanbia will pay its Member milk suppliers 31 cent per litre (cpl) including VAT for April manufacturing milk supplies at 3.6% butterfat and 3.3% protein.

Based on current market returns, Glanbia Ireland (GI) will pay a base milk price for April of 29 cpl including VAT, for manufacturing milk at 3.6% fat and 3.3% protein. In addition, Glanbia Co-op will make a support payment to Members of 2 cpl including VAT, for April manufacturing milk at 3.6% fat and 3.3% protein.

The Glanbia Ireland base price and the Co-op support payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.

Henry Corbally, Glanbia Chairman, said: “We are acutely conscious that adverse weather has made 2018 a very challenging year to date for our milk suppliers. As a result, the Board has made a number of decisions that will boost cash flow for Members”.

The measures include:

  • As announced on 1 May, Glanbia Co-op Members will be entitled to avail of interest-free cashflow support from the 2018 Glanbia Advance Payment (GAP) Scheme. This voluntary Scheme will make 1 cpl of interest-free cashflow support available to participating suppliers on April milk supply. An application form for the 2018 GAP scheme will issue shortly to all Glanbia Co-op Members that supply their milk to Glanbia Ireland;
  • In the coming weeks, a payment of 26 cent per share of Share Interest (Special Dividend) will be paid to all Glanbia Co-op Members on the share register at 18 May 2017. The Share Interest (Special Dividend) of €10 million will be worth over €1,000, on average, to milk supplying shareholders;
  • The Board will be recommending to the forthcoming Glanbia Co-op Annual General Meeting on 30 May 2018 a 30% increase to 13 cent per share in the Share Interest (Ordinary Dividend). If approved by Members, this will be worth a total of €4.8 million, or €520, on average, to milk supplying shareholders;
  • Glanbia Ireland will bring forward the payment of feed bonuses to participants in the Glanbia Milk & Feed Loyalty Scheme. This five-year Scheme, which commenced on 1 January 2018, pays a Loyalty Bonus of €30 per tonne on all dairy feed purchased by participants. For the year to date, this will be worth an average of €1,500 to Scheme participants;
  • As previously announced, Glanbia will make a support payment of €50 per tonne on all qualifying feeds purchased in April. This will result in approximately €2.5 million being credited to Members in their trading accounts.

Fixed Milk Price Scheme (Phase 12)

Henry Corbally further noted that Glanbia continues to focus on measures to minimise the on–farm impact of market volatility and is pleased to announce that Glanbia is open for applications to a new Fixed Milk Price Scheme - Phase 12. This Scheme will pay a base price of 31 cpl (including VAT) for 18 months – from June 2018 to November 2019.

Allocation letters for Fixed Milk Price Scheme (Phase 11), which was over-subscribed, were issued this week.

First Published 14May 2018

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