Terms of the 2018 Seasonality Scheme

Glanbia Ireland suppliers are reminded of the terms of the 2018 Seasonality Scheme. The three-year Seasonality Scheme was announced in March 2017 following approval by the Board.

For 2018, a fixed Early Lactation Bonus of 4.25 cpl (including VAT) will be paid on all qualifying litres supplied by creamery milk suppliers during the last two weeks of January and for the month of February.

A Late Lactation Bonus will be paid on all qualifying volumes supplied during the month of November each year. The rate of the Late Lactation Bonus will be determined by the total qualifying volume, up to a maximum late lactation bonus pool payout of €0.5 million.

The Early Lactation Bonus and Late Lactation Bonus payments do not apply to suppliers with liquid and/or winter milk contract volumes.

The new Seasonality Scheme, which is subject to annual review, will operate on the following basis from 2018:

• Bonus payments, which are available to all Glanbia Ireland creamery milk suppliers in the Republic of Ireland, will be based on standard constituents;
• The Early Lactation Bonus will be paid on all qualifying litres of creamery milk supplied during the last two weeks of January and the month of February;
• The Late Lactation Bonus will be paid on all qualifying volumes of creamery milk supplied in November;
• To qualify for the Early Lactation Bonus, suppliers must supply a minimum of 3% of their annual supply in the Glanbia accounting month of February;
• To qualify for the Late Lactation Bonus, suppliers must supply a minimum of 3% of their annual supply in the Glanbia accounting month of November;
• In order to qualify for both the Early Lactation Bonus and the Late Lactation Bonus, suppliers must supply no more than 15% of their annual supply in the Glanbia accounting month of June;
• Milk lactose levels must be a minimum of 4.35% in order to qualify for the Early Lactation Bonus and Late Lactation Bonus;
• Based on the previous calendar year’s milk supply pattern (3% Feb, less than 15% peak), qualifying suppliers will be paid the early lactation bonus with their February 2018 milk payment (paid in March 2018).
• Based on the previous year’s milk supply pattern (3% Nov, less than 15% peak), qualifying suppliers will be paid the late lactation bonus with their January 2019 milk payment (paid in February 2019);
• In January each year a review of qualifying suppliers will be completed, following from which any newly qualifying suppliers will be identified and will receive a retrospective payment. Payments made to suppliers who did not meet the previous year’s qualifying criteria (max 15% in June and the minimum 3% Feb/Nov requirement) will be recovered over the three month period Apr to June.

First Published 22 January 2018