Glanbia October milk price up 2cpl to 28 cpl

Glanbia members will receive 28 cpl for October milk supplies. Glanbia Ingredients Ireland will pay 27 cpl for October milk, with 1 cpl of milk price support from Glanbia Co-operative to its members.

Glanbia will pay its member suppliers 28 cent per litre (cpl) including VAT for October manufacturing milk supplies. This price is inclusive of a 1 cpl Glanbia Co-operative Society support payment to its members.

Glanbia Ingredients Ireland (GII) has increased its base price by 2 cpl to 27 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 1.0 cpl (including VAT) for October manufacturing and liquid milk supplies.

Henry Corbally, Glanbia Chairman, said that the Board will continue to monitor markets on a monthly basis. While welcoming the recent recovery, he cautioned that dairy markets remain fragile due to a number of uncertainties in the global environment.

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 was below a “price trigger”, set by the Board of the Co-op. For the 2016 Scheme, the price trigger was set at a GII base price of below 24 cpl (including VAT). The interest-free reimbursements to the GAP Scheme will be triggered when the market price recovers to above 30 cpl.

Members that have signed up to avail of the 2016 GAP Scheme were paid an interest free cashflow support payment of 2 cpl for all eligible milk supplied in May, June and July, as well as 1 cpl for manufacturing milk supplied in August.

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. Members interested in availing of the 2016 Glanbia Advance Payment Scheme should contact the Co-Op Shares Office on 058-22241 or their local Farm Development Manager.

First Published 15 November 2016