The Milk Supplier Trading Bonus will be paid to qualifying Members with their January milk payment and is based on 2018 milk supply volumes.
A total of 3,755 Glanbia Co-op Members will receive an average Milk Supplier Trading Bonus of €2,850. Two-thirds of Trading Bonus recipients qualified for the top rate bonus payment of 0.75 cent per litre (plus VAT) on their 2018 milk supply, their reward for spending over 7 cent per litre (cpl) with Glanbia Ireland last year.
In the coming weeks a further €3m in Trading Bonus payments will be paid to Members with the distribution of the Grain Supplier Trading Bonus and the Feed Trading Bonus.
The Trading Bonus Scheme is funded from Glanbia Co-op’s 60% share of the dividend paid by Glanbia Ireland to its shareholders, Glanbia Co-op and Glanbia Plc.
Commenting, Martin Keane, Chairman of Glanbia Co-operative Society said that the Trading Bonus rewards Glanbia Co-op Members for trading with the business that they majority own, Glanbia Ireland. “It is an equitable and transparent means of returning a share of Glanbia Ireland’s profit to active farmers”.
2019 Trading Bonus Scheme
In January, Glanbia Co-operative Society (“Glanbia Co-op”) announced the details of the 2019 Trading Bonus Scheme.
For milk supplier Members of Glanbia Co-op, the 2019 Trading Bonus is again potentially worth up to 0.75 cpl on all milk delivered in 2019 (Table 1). For grain growers, a Trading Bonus of up to €10 per tonne of grain supplied is available for 2019.
Beef, sheep and pig farmer customers of Glanbia Ireland that are Glanbia Co-op members will also qualify for a Feed Bonus on their tonnes purchased this year. The 2019 Feed Trading Bonus will be €10 per tonne on Beef, Dairy and Sheep Feed products purchased from Glanbia Ireland by non-milk suppliers, with €3 per tonne available to qualifying Co-op Members on purchases of pig feed and Straights. In a change from the 2018 Trading Bonus Scheme, eligibility for Feed Bonus payments is confined to non-milk suppliers in 2019 (all feed purchases continue to count towards a milk supplier’s total spend for the Milk Supplier Trading Bonus).
As shown in Table 1, the Milk Supplier Trading Bonus is worth up to €3,750 to a 500,000 litre supplier spending over 7 cpl with Glanbia Ireland this year. All 2019 purchases made from Glanbia Ireland (through the branch network, farm teams or online) – feed, fertilizer, veterinary medicines, dairy hygiene products and farm hardware etc – are included in the calculation (purchases made through Purchasing Groups count at 50% for 2019).
Glanbia members interested in qualifying for the 2019 Trading Bonus should contact their local Glanbia Business Manager.
Table 1: Glanbia Co-op 2019 Trading Bonus for Glanbia Ireland milk suppliers*
|Level of trade with Glanbia Ireland (cpl)|
|Trading Bonus (cpl)|
|Trading Bonus** (€) for 500,000 litre supplier|
|Trading Bonus for 500,000 litre supplier (including VAT)|
*In order to qualify for the 2018 Milk Supplier Trading Bonus, Members must hold a valid Milk Supply Agreement (MSA) with Glanbia Ireland.
**VAT flat rate addition will be paid on milk supplied by non-VAT registered farmers who have confirmed their non-VAT registered status in writing to Glanbia at the rate applicable at the time of payment.
Any shareholder with queries on the Trading Bonus should contact the Glanbia Co-op Shares Office on 058-22241. If the query relates to a farmer’s trading or milk accounts, they should contact their local Glanbia Ireland representative or the Customer Service Centre (CSC) on 1890 321 321. Further information is also available on www.glanbiaconnect.com