Glanbia to pay Members 30cpl for May milk
Glanbia will pay its Member milk suppliers 30 cent per litre (cpl) including VAT for May manufacturing milk supplies at 3.6% butterfat and 3.3% protein.
Glanbia Ireland (GI) will maintain its base milk price for May at 29 cpl including VAT, for manufacturing milk at 3.6% fat and 3.3% protein. In addition, Glanbia Co-op will make a support payment to Members of 1 cpl including VAT, for May manufacturing milk at 3.6% fat and 3.3% protein.
The Glanbia Ireland base price and the Co-op support payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.
Martin Keane, Glanbia Chairman, said: “there has been a welcome recovery in dairy market sentiment, driven mainly by adverse weather impacts on EU and US milk supply. The Board will continue to monitor developments on a monthly basis”.
Payments to Members and Suppliers
Meanwhile, Glanbia has completed a number of previously announced payments to Members and suppliers in order to help address cash flow challenges caused by the difficult Spring:
- Glanbia Co-op has completed the transfer of approximately €10m in Share Interest to all Members. This payment of 26 cent per share was worth over €1,000, on average, to milk supplying shareholders;
- Glanbia Ireland has completed the payment of feed bonuses to participants in the Glanbia Milk & Feed Loyalty Scheme. This five-year Scheme, which commenced on 1 January 2018, pays a Loyalty Bonus of €30 per tonne on all dairy feed purchased by participants. For the year to the end of April, this was worth an average of €1,500 to Scheme participants;
- Glanbia made a support payment of €50 per tonne on all qualifying feeds purchased in April. This resulted in approximately €2.5 million being credited to Members in their trading accounts.
Glanbia Advance Payment (GAP) Scheme 2018
On 1 May, Glanbia Co-op launched the 2018 Glanbia Advance Payment (GAP) Scheme, which offers interest-free cash flow support to milk supplier Members. Application forms for the 2018 GAP Scheme will be posted to milk supplier Members in the coming days.
Participation in this voluntary scheme allows Members to draw down cash flow support from the GAP Scheme when the Glanbia Ireland market price for manufacturing and liquid milk is below specific levels or “price triggers”. The interest-free repayments to the GAP Scheme are triggered when markets recover above specific levels.
For participating milk suppliers, the 2018 GAP Scheme will automatically advance a payment of up to 2 cent per litre (cpl) on liquid and manufacturing milk supply (excluding volumes in current fixed milk price schemes) in any month where the base Glanbia Ireland (GI) manufacturing milk price (including VAT) falls below 30 cpl. The trigger for commencing interest-free “return” payments to the GAP Scheme is a GI base manufacturing milk price of above 31 cent per litre including VAT. Return payments will be set at a maximum of 2cpl per month.
For April and May milk supplies, a GAP advance payment of 1 cpl will be available to participants.Fixed Milk Price Scheme (Phase 12)
Glanbia continues to focus on measures to minimise the on–farm impact of market volatility and is currently accepting applications for Fixed Milk Price Scheme - Phase 12. This Scheme will pay a base price of 31 cpl (including VAT) for 18 months – from June 2018 to November 2019. The closing date for receipt of applications is this Friday, June 15.
First Published 12 June 18