Glanbia will pay its member milk suppliers 35.42 cent per litre (cpl) (including VAT) for January creamery milk supplies at 3.6% butterfat and 3.3% protein.
Glanbia Ireland (GI) will pay a base milk price for January of 31 cpl (including VAT) for creamery milk at 3.6% fat and 3.3% protein. This is an increase of 1 cpl from the December base price.
Farmer Members will also receive a 0.42 cpl (including VAT) payment from Glanbia Co-op on all milk supplied this month as their ‘Share of GI Profit’. This new payment, which will be adjusted to reflect the constituents of milk supplied, will be paid on all milk supplied by Co-op Members in 2020.
Glanbia Co-op Members will also have the opportunity to participate in the 2020 Trading Bonus Scheme which rewards Glanbia Co-op Members for trading with the business that they majority own, Glanbia Ireland.
An Early Calving Bonus (ECB) of 4cpl (including VAT) will be paid to creamery suppliers for January milk. An Early Calving Bonus of 3cpl (including VAT) will be paid to creamery milk suppliers for all February milk. The ECB replaces the previous Seasonality Scheme.
The Glanbia Ireland base price, Glanbia Co-op Share of GI Profit payment and Early Calving Bonus will be adjusted to reflect the actual constituents of milk delivered by suppliers.
Glanbia Ireland liquid milk suppliers who deliver high quality milk year round receive a bonus of 7.4 cpl (including VAT) on their contracted liquid milk volumes for the six months from October to March. Participants in the Autumn Calving Scheme (ACS) will be paid 8.5 cpl (including VAT) on their contracted November to February volumes. Liquid Milk contract holders and Autumn Calving Scheme participants are not eligible for the Early Calving Bonus.
Glanbia Chairman Martin Keane said: “In the marketplace, global milk supply growth continues to be restrained, which has improved market sentiment. However, the impact on dairy markets of the unfortunate Coronavirus outbreak in China will need to be monitored closely over the coming months.”
Glanbia Co-op to pay €10.8m Trading Bonus to Members
Meanwhile, Glanbia Co-operative Society has confirmed that a total of €10.8 million will be paid to milk supplier Members of the Co-op this month as part of its 2019 Trading Bonus Scheme.
The Milk Supplier Trading Bonus payment will be made to qualifying Members with their January milk payment and is based on 2019 milk supply volumes.
A total of 3,375 Glanbia Co Members will receive an average Milk Supplier Trading Bonus of €3,205.
Two thirds of Trading Bonus recipients qualified for the top rate bonus payment of 0.75 cpl (plus VAT) on their 2019 milk supply as they spent over 7 cpl with Glanbia Ireland last year.
In the coming weeks, a further €1.4m in 2019 Trading Bonus Scheme payments will issue to Members for the Green Grain Supplier Trading Bonus.
Another €1m of 2019 Trading Bonus Scheme payments will be paid in the summer for the Dried Grain Supplier Trading Bonus.
Non-milk supplier Members will receive €0.5m for Feed Bonuses in the coming weeks under the scheme.
In addition to the 0.42 cpl (including VAT) payment on all milk (outlined above), Members will also have the opportunity to take part in the 2020 Trading Bonus Scheme.
This includes a payment based on the level of trade for milk and grain suppliers. In addition, beef, sheep and pig farmer customers that are Glanbia Co-op Members can qualify for a Feed Bonus on tonnes purchased.
Martin Keane said that the Trading Bonus rewards Glanbia Co-op Members for trading with the business they majority own, Glanbia Ireland.
“The new monthly payment of 0.4 cpl on all milk supplied, in addition to the 2020 Trading Bonus Scheme, is an equitable and a more immediate way of sharing the Co-op’s portion of GI profit with our active farmer Members.”