Two cent/litre contribution proposed by Glanbia from 2015

A contribution of two cent per litre on forecast growth milk volumes for five years from 2015 is being proposed to Glanbia milk suppliers, as part of a milk supply agreement plan from 2015.

This contribution would be repayable to suppliers, but details of a proposed repayment mechanism are yet to be finalised.

A contract between each supplier and Glanbia Dairy Ingredients Ireland will replace the EU quota, which will be abolished on Apr 1, 2015. Each supplier will be allocated a volume of core milk, based on the higher of his or her EU quota or actual supply over a three-year reference period up to Apr 2011.

Meanwhile, talks continue between Glanbia PLC and its majority shareholder, Glanbia Co-op, to turn Dairy Ingredients Ireland into a PLC/co-op joint venture.

Asked if there will be a requirement for shareholder approval by vote of the joint venture, a Glanbia spokesperson said that the group will answer all such questions in full upon completion of discussions.

Meanwhile, Glanbia has held its June manufacturing milk price at 28.5c per litre including Vat, despite ongoing low market returns. The company said this price will be kept under review.

The company issued a statement yesterday: “In view of weather-related difficulties at farm level, Glanbia announces that it has held the price of its manufacturing milk for June at 28.5 cent per litre including Vat.”