Glanbia announces 2019 grain pricing

Ireland’s largest buyer and user of native Irish grains, Glanbia Ireland, has confirmed its harvest 2019 grain pricing (Table 1).

Due to higher yields and increased support from growers in our catchment area, Glanbia Ireland’s harvest intake this year is over 200,000 tonnes, which is 40% ahead of the previous year.

Green barley delivered by Members to Glanbia Ireland drying locations during harvest 2019 will be paid a total of €141 per tonne. This price includes a €3 per tonne Co-op market support payment to all Members. This is in addition to the 2019 Glanbia Co-op Grain Trading Bonus Scheme under which Members can achieve a bonus of up to €10 per tonne based on their level of qualifying inputs purchased.

Glanbia Chairman Martin Keane said that while it was a very good harvest for yield and quality, the Board of the Co-op recognised that growers were selling into a weak market. “In light of the challenging market for grain, the Board has today agreed to make a €3 per tonne market support payment on all 2019 harvest tonnes delivered by Members. The vast majority of our Members are loyal customers of the business, which ensures that they qualify for the €10 per tonne Trading Bonus.”

Premium contracts

Martin Keane said that the Glanbia grain strategy for a number of years has been to move as much grain as possible out of commodity markets and into premium niche categories.

“Over 35% of our total grain intake now attracts a market premium above the base price. These premiums deliver significant benefits to our growers and we understand that Glanbia has a higher proportion of its grain in premium contracts than other grain purchasers in the country.”

“For example, across all contracts, the weighted average price paid for barley to Glanbia Co-op Members this harvest is €166 per tonne (including transport allowance, premiums and Trading Bonus).”

Gluten-free Oats

Glanbia Ireland has recently announced plans to extend the acreage sown to gluten-free oat crops amid increasing demand for these products.

The crop attracts a premium of €40/tonne over green wheat price, with all harvesting and transport carried out by Glanbia Ireland using dedicated gluten-free machinery. Previously, Glanbia Ireland’s gluten-free oat crops were mainly in Kildare, Laois and Carlow. However, the Premium Grains team are looking to extend the landbase sown to gluten-free outside of this area in cases where farms can meet certain criteria.

Table 1: Glanbia Ireland prices* for 2019 harvest crops

Notes:

*All prices quoted include a standard transport allowance for delivery to drying locations, with higher allowances paid for growers located greater than 15kms from the relevant drying locations.

**Inclusive of €3 per tonne of Co-op Support for grain supplied, plus a €10 per tonne 2019 Grain Trading Bonus. As previously announced, Co-op Members are eligible for the 2019 Grain Trading Bonus, which pays up to €10 per tonne where purchases of qualifying inputs from Glanbia exceed €60/t of grain supplied.

Price quoted exclude VAT.

First Published 23 September 2019