GII’s most successful fixed milk price offer
The scheme has proved the most successful to date.
When it was launched in late February, the base milk price in the scheme was set at 32.61 cpl for milk delivered from April 1(at average Glanbia constituents, the base milk price would equate to 34.5 cpl).
Farmers with a history of participation are prioritised; they received 58% of their requested volumes in the new scheme, the highest allocation rate to date.
It will run until March, 2018. Retrospective top-up payments for April and May are being made to participating suppliers with their June milk statement (for qualifying members of Glanbia Co-operative Society, support payments are paid on top of the fixed milk price portion of their milk).
It is GII’s fifth Fixed Milk Price Schemes since 2011, offering both farmers and customers for dairy produce scope to cope with market volatility. It is available to suppliers who have signed a milk supply agreement.
The base milk price in this scheme will be adjusted annually to reflect farm input cost movements, general consumer price inflation and, as appropriate, the market adjuster mechanism, which keeps both farmers and customers within a defined range of the prevailing market price.
Around 40% of GII’s suppliers have approximately 30% of their milk sold under the fixed schemes.
For milk not in the fixed scheme, GII announced a price for June milk of 28cpl including VAT (inclusive of 1cpl from the 2013 Milk Price Stability Fund, which will be paid to all suppliers, plus a 1cpl Glanbia Co Operative Society support payment to its members).
The June milk payment will use up the entire €2.6m remaining of GII’s €5m Stability Fund.
