Glanbia Co-op has confirmed that dairy farmer members will receive 0.4c/l for all milk supplied under its 2021 share of Glanbia Ireland (GI) profit.
It has also confirmed that, in the coming weeks, Glanbia Co-op will return a further €6.3m to 4,500 farmer shareholders under the terms of the 2020 trading bonus scheme.
In 2020, milk supplier members of Glanbia Co-op received a 0.4c/l payment each month on all milk supplied as their share of GI profit.
This payment to members was adjusted to reflect the actual constituents of the milk delivered.
During 2020, Glanbia Co-op paid a total of €12.9m to milk suppliers as their share of GI profit.
Equitable and transparent
Commenting, Glanbia Co-op chair John Murphy said: “The combination of the monthly share of GI profit payment and the 2021 trading bonus scheme is an equitable and transparent means of returning the co-op’s share of GI profit to our active farmer members.
“Profit made from milk processing business is returned to those whose milk generated it, while the trading bonus rewards our members for trading with the business that they majority own, Glanbia Ireland,” he said.
In addition to the trading bonus and share of GI profit payment, Glanbia Co-op also paid a total of €10m in share interest (dividend) payments or 28.5c/share to all co-op members in 2020.
2021 trading bonus scheme
The terms of the trading bonus scheme for 2021 are unchanged from 2020.
For milk supplier members of Glanbia Co-op, the 2021 trading bonus is potentially worth up to 0.4c/l on all milk delivered in 2021.
For grain growers, a trading bonus of up to €10/t of grain supplied is available for 2021.
The milk supplier trading bonus is worth up to €2,000 to a 500,000l supplier spending over 8c/l with Glanbia Ireland this year.
All qualifying 2021 purchases made from Glanbia Ireland are included in the calculation.
At the end of 2021, the total spend will be divided by the total litres of milk delivered to generate a cent per litre input spend for each member.
The applicable trading bonus will be paid in February 2022.
Beef, sheep and pig farmer customers of Glanbia Ireland who are Glanbia Co-op members will also qualify for a feed bonus on amounts purchased this year.
For non-milk suppliers, the 2021 feed trading bonus will be €10/t on beef, dairy and sheep feed products purchased from Glanbia Ireland.
There is €3/t available to qualifying co-op members on purchases of pig feed and straights and eligibility for feed bonus payments is confined to non-milk suppliers in 2021.