Glanbia Co-op 2019 Trading Bonus Scheme
Glanbia Co-operative Society (“Glanbia Co-op”) has announced details of its 2019 Trading Bonus Scheme that will reward farmer Members of the Co-op for purchases made from Glanbia Ireland and its subsidiaries.
For milk supplier Members of Glanbia Co-op, the 2019 Trading Bonus is potentially worth up to 0.75 cent per litre (cpl) on all milk delivered in 2019 (Table 1). For grain growers, a Trading Bonus of up to €10 per tonne of grain supplied is available for 2019.
Beef, sheep and pig farmer customers of Glanbia Ireland that are Glanbia Co-op members will also qualify for a Feed Bonus on their tonnes purchased this year. The 2019 Feed Trading Bonus will be €10 per tonne on Beef, Dairy and Sheep Feed products purchased from Glanbia Ireland by non-milk suppliers, with €3 per tonne available to qualifying Co-op Members on purchases of pig feed and Straights. In a change from the 2018 Trading Bonus Scheme, eligibility for Feed Bonus payments is confined to non-milk suppliers in 2019 (all feed purchases continue to count towards a milk supplier’s total spend for the Milk Supplier Trading Bonus).
As shown in Table 1, the Milk Supplier Trading Bonus is worth up to €3,750 to a 500,000 litre supplier spending over 7 cpl with Glanbia Ireland this year. All 2019 purchases made from Glanbia Ireland – feed, fertilizer, veterinary medicines, dairy hygiene products and farm hardware etc – are included in the calculation (purchases made through Purchasing Groups count at 50% for 2019).
At the end of 2019, the total spend will be divided by the total litres of milk delivered to generate a cent per litre input spend. The applicable Trading Bonus is then calculated based on the figures in Table 1.Table 1: Glanbia Co-op 2019 Trading Bonus for Glanbia Ireland milk suppliers*
|Level of trade with Glanbia Ireland (cpl)||Trading Bonus (cpl)||Trading Bonus** (€) for 500,000 litre supplier||Trading Bonus for 500,000 litre supplier (including VAT)|
|2 - 3||0.10||€500||€527|
|3 - 5||0.25||€1,250||€1,316|
|5 - 7||0.50||€2,500||€2,635|
*In order to qualify for the 2019 Milk Supplier Trading Bonus, Members must hold a valid Milk Supply Agreement (MSA) with Glanbia Ireland.
**VAT flat rate addition will be paid on milk supplied by non-VAT registered farmers who have confirmed their non-VAT registered status in writing to Glanbia at the rate applicable at the time of payment.
The Trading Bonus Scheme is funded from Glanbia Co-op’s 60% share of the dividend paid by Glanbia Ireland to its shareholders.Commenting, Martin Keane, Chairman of Glanbia Co-operative Society said:
“The 2019 Trading Bonus Scheme builds on the very successful Trading Bonus Scheme launched in 2018. In the coming weeks, the 2018 Trading Bonus Scheme will return almost €14m to our active farmer shareholders. The Trading Bonus rewards our Members for trading with the business that they majority own, Glanbia Ireland. It is an equitable and transparent means of returning a share of Glanbia Ireland’s profit to active farmers”.
Glanbia Co-op will write to Members in the coming days with details of the 2019 Trading Bonus Scheme.
First Published 29 January 2019