Glanbia introduces seasonality changes
Glanbia has announced a series of amendments to its milk seasonality scheme, which is being introduced next year.
The changes to the scheme, which have been passed by the Glanbia board, were detailed in a letter that was sent out to the company's suppliers this week.
Reacting to the Glanbia move, Pat McCormack, of the ICMSA, said the amendments were absolute requirements, not concessions, and shouldn't have been presented as such by Glanbia.
Under the changes, the level of deductions to be imposed for the first year will be halved compared with the original terms of the scheme.
This means that farmers who increase their total supply in June, relative to the rest of the year above historic reference levels, will now face a fine of 0.5pc of milk price for every 0.1pc increase in June deliveries above a 16pc threshold. Under the original proposals, the level of fines would have been 1.0pc of milk price. The fines are levied on May and June supplies.
However, the Glanbia letter stressed that this change was subject to an annual review, and from 2013 the original terms of the scheme could apply if the desired changes in supply patterns are not acheived.
In a further concession, the reference period for the calculation of the interim deduction in July next year will be the second half of a three-year reference period from 2008 to 2010 and not the second half of this year as was initially proposed.