Farm Ireland

Monday 16 July 2018

Glanbia launches new 5-year milk and feed loyalty scheme

Glanbia Ireland has a 2.4 billion litre milk pool from 4,800 suppliers
Glanbia Ireland has a 2.4 billion litre milk pool from 4,800 suppliers
Margaret Donnelly

Margaret Donnelly

Glanbia Ireland has announced details of a new Milk & Feed Loyalty Scheme (Glanbia Loyalty Scheme), including a five-year fixed milk price element and a €30/t loyalty bonus on concentrate dairy feeds from GAIN Animal Nutrition products.

The voluntary scheme will pay a Fixed Base Milk Price of 31c/L (including VAT) at base constituents of 3.6pc butterfat and 3.3pc protein plus a Feed Adjustor valued at between 2-3c/L for those participating in the dairy feed element of the Glanbia Loyalty Scheme.

In addition to availing of the Fixed Base Milk Price (31c/L inc VAT), participants in the new Scheme can also avail of an optional dairy feed component, with a €30/t loyalty payment on concentrate dairy feeds from Glanbia Ireland’s GAIN Animal Nutrition range.

Glanbia Ireland milk suppliers that avail of the feed option will have priority to the milk pool available in the loyalty scheme.

Glanbia Chairman, Henry Corbally said: “The Glanbia Loyalty Scheme for milk and dairy feed prices is another international first for Glanbia."

Sean Molloy, Director of Strategy and Supply Development with Glanbia Ireland, said that; “As well as huge risk management benefits for farmers, the new Glanbia Loyalty Scheme offers customers unrivalled traceability. The establishment of this cohort of farmers allows Glanbia Ireland promote the ‘closed loop’ procurement concept in terms of product claims and marketing initiatives.”

Glanbia recently announced that it was paying 34c/L for July milk, a 1c/L increase on June milk, to its 4,800 milk suppliers.

The 5-year Glanbia Loyalty Scheme will pay a Fixed Base Milk Price of 31c/L at 3.6pc butterfat and 3.3pc protein (including VAT) for five years.

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For those participating in the feed element of this scheme, the additional Feed Adjustor of between 2c/L and 3c/L will be paid by way of a loyalty payment of €30/t on feed purchased under the scheme (the actual value of the Feed Adjustor depends on the volume of milk committed to the scheme and the level of feed purchased each year).

The Scheme will commence on 1 January 2018 and run for a five year period to 31 December 2022.

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