GAP scheme opens for grain grower members

Glanbia Co-operative offers interest free cashflow support to member suppliers of grain.

Glanbia Co-operative is this week writing to its grain grower members, outlining details of the “Glanbia Advance Payment” (GAP) Scheme for grain.

The GAP Scheme provides interest-free cash flow support to member suppliers in periods when market prices are weak. Over the next five years, up to €5 million of interest free cashflow support is available to Glanbia grain supplier members from Glanbia Co-operative.

Participation in this voluntary scheme will allow members draw down cash flow support from the Glanbia Advance Payment Scheme when the market price for grain falls below specific levels or “price triggers”, set annually by the Board of the Society. The price trigger for the 2016 GAP Scheme was a December 2016 MATIF (Euronext exchange) price available before 31 July 2016 of less than €180 per tonne for wheat. As this price trigger has been reached, an Advance Payment is available for oilseed rape (OSR), beans, green and dried grain supplied from the 2016 harvest.

For participating grain suppliers who are members of the Society, the voluntary Glanbia Advance Payment (GAP) Scheme (2016 Grain) will operate as follows:

• The Advance Payment on 2016 grain, oilseed rape (OSR) and bean deliveries is set at €20 per tonne on a maximum volume equal to the member’s 2015 supply of harvest products (cereal grains, OSR and beans);
• The trigger for a grain reimbursement to the GAP Scheme is a MATIF (Euronext exchange) price of €205 per tonne of wheat occurring after 31 July 2016. Once the price trigger is reached, reimbursements of the Advance must occur within 12 months;
• If not repaid earlier by virtue of market price movements, all monies advanced in 2016 to participating members will be recovered between January and December 2020.

Participation in the 2016 Glanbia Advance Payment (GAP) Scheme (2016 Grain) is voluntary by members and is subject to Glanbia credit assessment.

“One of the core principles of Glanbia Co-op is to support our active members and the Glanbia Advance Payment (GAP) Scheme was developed by Glanbia to help its member suppliers cope with income volatility. The aim of the GAP Scheme is to deliver interest free cashflow support to members who supply milk or grain to Glanbia.”

Further information on the Glanbia Advance Payment Scheme is available from the Glanbia Co-operative Society Shares Office on 058-22241.

First published 6th September 2016