Glanbia brings forward 1.5c/l top-up to suppliers
Glanbia Ingredients Ireland Limited (GIIL) is to bring forward a top-up payment of 1.5c/l to some 2,000 of its suppliers who are on fixed milk price contracts.
With GIIL paying 37.5c/l for its normal milk supplies, the move will see fixed price contract milk receive a price of just under 36c/l for June supplies.
The top-up payment, which is part of the GIIL promise that fixed milk contracts will not lag the open market price by more than 1.5c/l, was due to be paid in early 2014.
However, a spokesman for GIIL said the board had decided to bring forward the payment in recognition of the cashflow pressure on farms since the spring.
He added that the board had also taken the view that the dairy market outlook suggested that the open market weighted average price was not going to change dramatically between now and the end of 2013.
"The outlook for markets is reasonably positive and prices are unlikely to fall dramatically before the end of the year," he maintained.
Letters confirming the top-up payment to fixed price suppliers will be delivered to farmers today and will continue to be paid on a monthly basis for the rest of the year.