Interest high for Glanbia fixed milk price contracts
Glanbia has reported strong interest among its suppliers for its fixed milk price contract for the next three years. Several hundred application forms for the milk price deal have been requested by suppliers ahead of the closing date this Friday.
Some farmers have already signed up for the deal, which will pay them 28c/l excluding VAT and adjusted for constituents, with indexation of farm input costs.
However, the majority of farmers are waiting to hear more about the contract at a series of regional information meetings taking place this week.
Jim Bergin, CEO of Glanbia Food Ingredients Ireland, said the company's target was to sign up the equivalent of 10pc of Glanbia's total manufacturing milk pool of 1.4bn litres at the fixed price.
Meanwhile, the processor is also asking farmers to help decide how Glanbia should be expanded and developed into the future.
The detailed review of likely future milk supplies will help to determine milk processing capacity requirements over the period up to the end of milk quotas, said Mr Bergin.
"If farmers are going to expand by 5pc, then we need to plan for that but if they are going to expand by 15pc, we need to make the necessary changes," he insisted.