Glanbia milk suppliers to decide on extended contract agreement

Glanbia Ingredients Ireland Ltd milk suppliers will be asked to sign up to a five-year milk supply agreement, with an initial three-year contract period from January 2015 to December 2017.

Any supplier wishing to leave the company must provide two years’ notice from January 2018, the Kilkenny processor has confirmed following a meeting with its suppliers’ council yesterday. The company said the agreement is intended to reward supplier loyalty. A €2.5m loyalty fund will be created for those signing the agreement.

This fund will be based on milk volume supplied in 2013 and will approximate to 1cpl (cent per litre) on June 2014 milk supply. The fund will be paid in full in July to those suppliers who have signed the agreement.