Glanbia will subsidise milk by 1c/l in 2016
Glanbia is to confirm to milk suppliers this week that the co-op will top up milk price by 1c/l on average for all members throughout 2016.
With the news that Glanbia Ingredients Ireland's (GII) intake increased by 22pc last year to a massive 2bn litres, this equates to €21m.
The milk top-ups will be part of a package that also includes a €7/t rebate on fertiliser and feed, which is €2/t higher than last year.
The bonuses for grain are the same as last year, with a €5 top-up on green grain, and an additional €2/t on dried grain. However, this bonus is subject to a minimum spend of €40/t on fertiliser and chemicals.
In addition, over €8m will be paid out to shareholders from the €67m support fund created by the co-op's sale of 4m Glanbia plc shares in May 2015. While this dividend is paid to all shareholders, the amount distributed is in proportion to the total level of support for active shareholders. It will not be all paid out during 2016.
A spokesman for the processor said that GII had subsidised the milk price to their suppliers by €27m in 2015. He added that markets were not getting any better in the last week.