The board of Glanbia Co-op has approved a second member support package, for 2016, to be worth at least €35.6m. This follows the €30m support package paid out to qualifying members in 2015.
The new package will provide:
In a statement, the co-op said that as in 2015 patronage supports will be paid only to members who have signed a valid milk supply agreement with GII.
The rebate on feed and fertilizers will be worth 0.15c/l to a typical milk supplier purchasing all feed and fertilizer from Glanbia. The rebates on green and dried grain will be subject to a minimum spend of €40/t on qualifying inputs, it said.
The Irish Farmers Journal understands that the rebates on feed and fertilizer will be made in January 2017.
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Funds from shares issue
Glanbia Co-op said that the 2016 package will utilize a portion of the €67m support fund created by its sale of four million Glanbia plc shares in May 2015. As part of the same process, the spin-out of 10 million Glanbia plc shares to co-op members unlocked €170m of value created in the plc for distribution to members, it said.
“When combined with the 2016 member support package this brings the total value distribution by the Society in 2015/16 to €235.6m.”
“This 2016 support package demonstrates the power of the Glanbia model,” said chairman Henry Corbally. “Farmer members are paid a competitive market price for their produce and also benefit from the value created in Glanbia plc.”
Separately, the board of GII confirmed that it will pay out the entire additional cash bonus announced by Ornua on manufacturing milk supply.