The Glanbia Ingredients Ireland Limited (GIIL) milk contract will run for five years rather than seven, as had originally been proposed earlier this year.
Speaking to the GIIL council yesterday (Wednesday), Jim Bergin said: “Following feedback from our representative structure, we are asking our suppliers to sign up to an initial three-year agreement, starting in January 2015, and then if they want to move processor, they must give two years’ notice, so five years in total.”
This is shorter than at Dairygold and Kerry Foods, which both require farmers to sign up for seven and 12 years respectively.
Glanbia has also decided to create a €2.5m loyalty fund to share among those farmers who sign up before the end of June. Glanbia says this “sweetener” will equate to almost 1c/litre on volumes supplied in June, if the expected number of farmers sign up by the end of June. Glanbia also clarified that only those who sign up to the milk contracts will be eligible for bonuses and allowed to apply for the fixed milk price scheme. Details of the new fixed milk price scheme are to be released next week.
The other main changes from earlier proposals are:
Dual suppliers don’t have to send all new or “growth” milk to Glanbia, but they must send a proportion of their new milk to Glanbia.Post 2015, GIIL will accept all extra milk that farmers want to supply, from members and non-members.Farmers must prepare a three-year rolling supply forecast, but if it’s wrong there are no consequences and it’s merely a guide.There will be no seasonal fines for peak supply in 2015, but no decision as to what will happen after 2015.The main terms set out will be applied to Wexford suppliers. However, the €2.5m fund will not apply to Wexford suppliers.Next week, Glanbia will be sending out written notices to their suppliers, outlining the key issues they need to understand when signing their milk contracts.
The Glanbia Ingredients Ireland Limited (GIIL) milk contract will run for five years rather than seven, as had originally been proposed earlier this year.
Speaking to the GIIL council yesterday (Wednesday), Jim Bergin said: “Following feedback from our representative structure, we are asking our suppliers to sign up to an initial three-year agreement, starting in January 2015, and then if they want to move processor, they must give two years’ notice, so five years in total.”
This is shorter than at Dairygold and Kerry Foods, which both require farmers to sign up for seven and 12 years respectively.
Glanbia has also decided to create a €2.5m loyalty fund to share among those farmers who sign up before the end of June. Glanbia says this “sweetener” will equate to almost 1c/litre on volumes supplied in June, if the expected number of farmers sign up by the end of June. Glanbia also clarified that only those who sign up to the milk contracts will be eligible for bonuses and allowed to apply for the fixed milk price scheme. Details of the new fixed milk price scheme are to be released next week.
The other main changes from earlier proposals are:
Dual suppliers don’t have to send all new or “growth” milk to Glanbia, but they must send a proportion of their new milk to Glanbia.Post 2015, GIIL will accept all extra milk that farmers want to supply, from members and non-members.Farmers must prepare a three-year rolling supply forecast, but if it’s wrong there are no consequences and it’s merely a guide.There will be no seasonal fines for peak supply in 2015, but no decision as to what will happen after 2015.The main terms set out will be applied to Wexford suppliers. However, the €2.5m fund will not apply to Wexford suppliers.Next week, Glanbia will be sending out written notices to their suppliers, outlining the key issues they need to understand when signing their milk contracts.
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