Glanbia Co-op confirms payments of €19.2m to Members

Glanbia Co-operative Society (“Glanbia Co-op”) has announced details of its 2021 Trading Bonus Scheme and has confirmed the continuation of its monthly profit distribution payment for milk supplying Members. 

It has also confirmed that, in the coming weeks, Glanbia Co-op will return a further €6.3m to 4,500 farmer shareholders under the terms of the 2020 Trading Bonus Scheme.

Glanbia Co-op owns 60% of Glanbia Ireland (“GI”) and receives a dividend each year which equates to 30% of the milk processor’s annual Profit-After-Tax (PAT). At the formation of GI in 2017, Members voted at a Special General Meeting (SGM) in Punchestown to ring-fence this dividend for distribution to active farmer Members of Glanbia Co-op. 

In 2020, milk supplier Members of Glanbia Co-op received a 0.4 cent per litre (cpl) (plus VAT) payment each month on all milk supplied as their “Share of GI Profit”. This payment to Members was adjusted to reflect the actual constituents of the milk delivered. During 2020, Glanbia Co-op paid a total of €12.9m to milk suppliers as their “Share of GI Profit”.

The Board of Glanbia Co-op has today confirmed the continuation of the Share of GI Profit distribution for 2021 and announced that Members will again have an opportunity to participate in a 2021 Trading Bonus scheme. The Share of GI Profit payment is 0.4 cpl (plus VAT) and is adjusted for the constituents of milk delivered by Members.

Commenting, John Murphy, Chairman of Glanbia Co-operative Society, said:

“The 2021 Trading Bonus Scheme is a continuation of the very successful Trading Bonus Scheme operated since 2018. The combination of the monthly “Share of GI Profit” payment and the 2021 Trading Bonus Scheme is an equitable and transparent means of returning the Co-op’s share of GI profit to our active farmer Members. Profit made from milk processing business is returned to those whose milk generated it, while the Trading Bonus rewards our Members for trading with the business that they majority own, Glanbia Ireland. I would like to thank all Members for their support of the Glanbia Ireland business during 2020.”

In addition to the Trading Bonus and Share of GI Profit payment, Glanbia Co-op also paid a total of €10m in share interest (dividend) payments or 28.5 cent per share to all Co-op Members in 2020.

 

2021 Trading Bonus Scheme

Glanbia Co-op has announced details of the 2021 Trading Bonus Scheme, which will reward farmer Members of the Co-op for purchases made from Glanbia Ireland and its subsidiaries. The terms of the 2021 Scheme are unchanged from the 2020 Trading Bonus Scheme.

For milk supplier Members of Glanbia Co-op, the 2021 Trading Bonus is potentially worth up to 0.4 cent per litre (cpl) on all milk delivered in 2021 (Table 1). For grain growers, a Trading Bonus of up to €10 per tonne of grain supplied is available for 2021.

As shown in Table 1, the Milk Supplier Trading Bonus is worth up to €2,000 to a 500,000 litre supplier spending over 8 cpl with Glanbia Ireland this year. All qualifying 2021 purchases made from Glanbia Ireland are included in the calculation (purchases made through Purchasing Groups count at 50% for 2021).

At the end of 2021, the total spend will be divided by the total litres of milk delivered to generate a cent per litre input spend for each Member. The applicable Trading Bonus will be paid in February 2022.

 

Table 1: Glanbia Co-op 2021 Trading Bonus for Glanbia Ireland milk suppliers*

Level of trade with Glanbia Ireland (cpl)	Trading Bonus (cpl)	Trading Bonus* (€) for 500,000 litre supplier	Share of GI Profit payment**
5.0 – 7.99	0.2	€1,000	€2,000*
≥8.0	0.4	€2,000	€2,000*

*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 Share of GI Profit will be adjusted to reflect the actual constituents of the milk delivered by Members.

 

Feed Bonus

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.

• For non-milk suppliers, the 2021 Feed Trading Bonus will be €10 per tonne on Beef, Dairy and Sheep Feed products purchased from Glanbia Ireland;  
• There is €3 per tonne available to qualifying Co-op Members on purchases of pig feed and straights;
• Eligibility for Feed Bonus payments is confined to non-milk suppliers in 2021 (all feed purchases continue to count towards a milk supplier’s total spend for the Milk Supplier Trading Bonus).

Farmer Members can log into their Glanbia Connect account to view their individual 2020 Trading Bonus Scheme details.

 

Table 1: Glanbia Co-op distributions to Members for 2020

	Total €m
2020 Trading Bonus Scheme	€6.3
GI Share of Profit 2020 (paid on all milk supplied by Members)	€12.9
Total	€19.2

 

To access your trading bonus status online click here.

First Published 1 February 2021