Glanbia increases July milk price to 23cpl

GII base price increases by 1cpl and Glanbia Co-op maintains support of 2cpl.

Glanbia will pay its member suppliers 23 cent per litre (cpl) including VAT for July 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 1 cpl to 21 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 2cpl (including VAT) for July manufacturing and liquid milk supplies.

Henry Corbally, Glanbia Chairman, said that the Society Board continues to be conscious of the need to support suppliers through what has been one of the longest slumps in global milk prices.

“We have seen some tentative signs that global dairy markets may be turning in the right direction but are also very aware of the ongoing challenges that our suppliers are facing and we’ll continue to do whatever we can to provide tangible and practical support.”

“The recently published KPMG Milk Price Review for 2015 demonstrates that Glanbia continues to be a strong, competitive payer for milk while the MilkFlex Fund and the Glanbia Advance Payment (GAP) scheme shows that we are willing to be innovative in how we provide that support.” 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 will allow members draw down cash flow support from the GAP Scheme when the market price for milk falls below “price triggers”, set annually 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.

Application forms for the GAP scheme have been issued to all Glanbia Member Suppliers with valid Milk Supply Agreements (MSA’s). Members interested in availing of this voluntary Scheme are encouraged to complete and return the application forms so that Advance Payments can commence.

If you are a milk supplier member of Glanbia Co-operative Society and have not received an Application Form for the Glanbia Advance Payment Scheme, please contact the Co-Op Shares Office on 058-22241 or your local Farm Development Manager.