Glanbia August milk price up 2 cpl

The August milk price for Glanbia members is 25 cpl, including 2cpl of support from Glanbia Co-operative Society to its Members.

Glanbia will pay its member suppliers 25 cent per litre (cpl) including VAT for August manufacturing milk supplies. This price is inclusive of a 2 cpl Glanbia Co-operative Society support payment to its members.

Glanbia Ingredients Ireland (GII) has increased its base price by 2 cpl to 23 cpl including VAT for manufacturing milk at 3.6% fat and 3.3% protein.

The Board of Glanbia Co-operative Society has decided to pay its members a support payment of 2.0 cpl (including VAT) for August manufacturing and liquid milk supplies.

Henry Corbally, Glanbia Chairman, said that there has been a welcome improvement in prices for dairy products on global markets. “The Board will continue to reflect market returns on a monthly basis,” he said.

Glanbia Advance Payment (GAP) Scheme

In June, Glanbia Co-operative Society launched a €50 million “Glanbia Advance Payment” (GAP) Scheme to provide interest-free cash flow support to member suppliers in periods when milk prices are weak.

Participation in this voluntary scheme has allowed members draw down interest-free cashflow support from the GAP Scheme when the monthly market price for milk falls below “price triggers”, set by the Board of the Co-op. For the 2016 Scheme, the price trigger is set at a GII base price of below 24 cpl (including VAT). The interest-free reimbursements to the GAP Scheme will be triggered when markets recover to above 30 cpl.

Members that have signed up to avail of the 2016 GAP Scheme have been paid an interest free cashflow support payment of 2 cpl for all eligible milk supplied in the months of May, June and July. For August milk volumes, participating manufacturing milk suppliers will receive 1 cpl of interest free cashflow support.

In light of the challenging cashflow situation on dairy farms, the Board has decided to extend the final closing date for applications for the 2016 GAP scheme until 30 November. All members accepted into the Scheme will be paid a GAP payment of 2 cpl for May to July supply and 1 cpl for August manufacturing milk volumes. The level of GAP payment for the months of September to December will be determined by the GII base milk price in those months.

Application forms for the GAP scheme have been issued to all Glanbia Member Suppliers with valid Milk Supply Agreements (MSA’s). Members that require a new Application Form for the Glanbia Advance Payment Scheme should contact the Co-Op Shares Office on 058-22241.

First published 13th September 2016