Glanbia amends peak milk supply schemes

Matters escalated due to factory investment plans being delayed by a judicial review

Glanbia says that some suppliers are willing to scale back peak volume. File Picture. 

Glanbia Co-op will fund a €6.7m voluntary peak reduction to ease the impact of the recently announced peak supply policy of 30% price cuts for milk supplied in excess of allocated peak month volumes.

The temporary policy is due to factory investment plans being delayed by a judicial review of planning approval for the proposed Glanbia Belview factory. 

“Our existing facilities, and co-operation with other processors, can facilitate some milk volume growth at peak, but not at the level that matches our farmers’ production plans,” said Glanbia chairman John Murphy.

He also pointed to how some suppliers are willing to scale back peak volume.

If they cut peak supply by at least 10% for three years, the new €6.7m voluntary scheme will offer them 10c per litre for peak volume not supplied. 

Peak capacity will thus be freed up for other suppliers. 

Extra leeway is also being given to suppliers under 400,000 litres.