Glanbia Ireland confirms new Fixed Milk Price Scheme

Glanbia Ireland has launched a new Fixed Milk Price Scheme with a base price of 31 cent per litre (cpl) (including VAT) at reference milk constituents of 3.6% and 3.3% protein.

The one-year voluntary scheme will run from January to December 2020.

The key elements of the Scheme (Phase 14) include:

• A base price of 31cpl (including VAT) at 3.6% butterfat and 3.3% protein;
• Any support payment made by Glanbia Co-operative Society to members would be paid on top of the fixed milk price;
• Qualifying applicants for the one-year scheme will be required to be customers (existing or future) of GI;
• As a customer of GI, applicants will be required commit to a minimum spend of 5cpl during 2020.

Commenting on the scheme, Sean Molloy, Chief Agribusiness Growth Officer, said there continues to be strong interest amongst suppliers in Fixed Milk Price Schemes.
"Volatility continues to feature in the dairy markets. This has led to strong interest amongst suppliers in Fixed Milk Price Schemes as they provide an opportunity to fix the price of a portion of milk supply to protect against market uncertainty," he said.
"The terms of this scheme continues with GI’s focus on rewarding customer loyalty. Currently the vast majority of GI’s customers who are in fixed milk price schemes are purchasing more than 5cpl in inputs each year - which for this scheme is set as a commitment level which will give applicants priority allocation of volumes."

First Published 13 November 2019