IFA welcomes Glanbia’s €32m bonus to suppliers
Some 92% of the co-op’s members voted in favour of the cash payment — to be paid on milk and grain supplied in 2014 and 2015, plus a loyalty payment for 2014 feed and fertiliser purchases.
Some €11.4m of this bonus is for 2014 milk and grain supplies and 2014 feed and fertiliser purchases; it will be paid as early as possible in 2015. The 2015 grain support of €0.8m will be paid after the grain harvest. The timing of payment of the €20m 2015 milk support fund will be decided by the co-op’s board.
Glanbia chairman Liam Herlihy said: “The financial strength of our society, with assets of €1.7bn, gives us the capability to support farmer members in 2015. We believe our members will particularly value this €32m as market conditions are expected to be more challenging in 2015 than in recent times.
“We are truly on the cusp of an exciting new era of dairy expansion. With opportunities there will also be some challenges; however, the Glanbia organisation is well-equipped to assist our member suppliers in managing these challenges.”
IFA national dairy committee chairman Sean O’Leary called on all co-ops to give dairy farmers a supportive framework to help them manage their business through the difficult early few months of this year. He also urged Glanbia to continue paying the strongest possible milk price in the tough months ahead.
“The move by Glanbia is a welcome contribution, as it seeks not only to support milk prices, but also to help with the payment of superlevy fines and to somewhat reduce the cost of inputs,” Mr O’Leary said.
“It is crucial any support mechanism implemented by co-ops does not undermine the mainstream milk price. The GIIL joint venture was established to make the necessary processing investment, but also to establish a debt-free co-op with the potential to support milk prices. All supplier shareholders should be eligible to receive the milk price support, without restrictions.”
Meanwhile, ICMSA president John Comer said paying the highest milk price should remain the first obligation for Glabia, and had precedence over any type of “selective” bonus.
