Glanbia vote could pave way for fixed price feed scheme
FARMERS may be able to avail of fixed price schemes for feed after they voted in favour of creating the new joint venture Glanbia Ireland, writes Louise Hogan.
Glanbia Ingredients Ireland (GII) chief Jim Bergin said this move to combine the milk processing, agribusiness and the consumer brands would result in "significant benefits".
"We're world leaders in volatility management and have been for a number of years, but that is on the output side. Now there is no reason why we can't be world leaders both on the output side and the input side," he said, adding it could be an option for animal feed.
"We have been giving a fixed milk price scheme but if you look at the States, farmers can cover their milk forward and their inputs forward as well and guarantee their margins.
"There is no reason why we can't put out something like that."
Over 2,300 Glanbia Co-op farmers voted by over 90pc in favour of selling off a 3pc stake in Glanbia plc to pay €112m to buy a 60pc shareholding in the Glanbia Consumer Products and Glanbia Agribusiness.
The new Glanbia Ireland €1.5bn business will combine GII, consumer products and agribusiness.
It will also allow a €40m member support fund be set up.