Glanbia facing a hard sell on supplier loyalty scheme
'Mixed to bad' reaction from farmers to 31c/l fixed milk price offer
Glanbia is facing an uphill battle to sell its new loyalty scheme to the company's 4,600 milk suppliers.
Reaction from Glanbia's dairy farmers to the scheme has been described as "mixed to bad", with farmers expressing serious misgivings that the fixed milk price element is tied to feed purchases from the group.
Under the scheme Glanbia announced a five-year fixed milk price of 31c/l including VAT and a €30 per tonne loyalty bonus on concentrate dairy feeds from GAIN Animal Nutrition products.
Controversially, Glanbia has stated that suppliers who commit to purchasing their feed from the processor will be given priority access to the fixed milk price strand of the package.
This move has provoked heavy criticism from the farm organisations.
A number of Glanbia suppliers contacted said they wouldn't apply for the scheme.
The farmers pointed out their feed suppliers were generally €15-20/t cheaper than the best prices available from Glanbia.
Management at Glanbia are due to meet with an ICMSA delegation tomorrow to discuss the loyalty package.