This is a subscriber-only article
Glanbia has announced Ireland’s longest-ever fixed milk price scheme, offering farmers 29.33c/l, excluding VAT (31c/l including VAT) for a five-year term.The new scheme is combined with a €30/t feed discount offering for dairy farmers who sign up.
The move comes as Kerry prepares to launch a three-year fixed milk price contract, also at 29.33c/l, excluding VAT (31c/l including VAT).
Glanbia’s milk and feed loyalty scheme offers a fixed base milk price of 29.4c/l excluding VAT at base constituents of 3.6% butterfat and 3.3% protein.
Suppliers who sign up to the milk price scheme will also be offered a €30/t discount on compound dairy feeds and coarse rations they buy from Glanbia Ireland, if they purchase 100% of their cows’ feed each year for the five-year scheme.
The scheme will begin on 1 January 2018 and run until 31 December 2022. It is open to all Glanbia Ireland suppliers in the Republic of Ireland with a milk supply agreement.
Farmers can choose to sign up for the fixed milk price only, but Glanbia will give preference to those who take part in both feed and milk schemes.
Farmers must commit at least 10% of their milk supply and there is no maximum, but this is dependent on volumes applied for in the overall scheme.
A 0.1c/l annual research and development charge will be applied.
Glanbia’s strategy director Sean Molloy said the scheme offered huge risk management benefits for farmers, as well as unrivalled traceability for Glanbia customers.
Listen to an interview with Sean Molloy in our podcast below:
Meanwhile, the Irish Farmers Journal understands that Kerry is to announce details of a fixed milk price contract from January 2018. The scheme will see Kerry buy milk at a fixed milk price of 29.33c/l, excluding VAT (31c/l including VAT) for three years from January 2018 to December 2020.
Farmers who apply to the scheme have to opt to supply 5% of their supply, 10% of their supply or between 11% and 20% of their supply.
Details of the Kerry fixed milk price contract are expected in the coming days, with a closing date of September mooted.
Listen: should Glanbia farmers commit to a five-year milk price?
Listen: should dairy farmers be asked to lock in feed volumes?
Milk prices increase this week
SHARING OPTIONS: