The reasoning behind launching a 2018 scheme now is simply to allow Glanbia farmers a chance to influence 2017 breeding start date and hence 2018 milk supply date.

The new three-year seasonality scheme runs from 2018 to 2020 inclusive.

The big change to the last scheme is that the early season bonus is now a fixed cent per litre rather than an unknown bonus.

Previously when the Glanbia early season bonus was unknown because it depended on the total volume Glanbia collected.

The other change is that October supply no longer applies for the late lactation scheme.

Early season bonus

Glanbia says for 2018, a fixed early lactation bonus of 4c/litre (excluding VAT) or 4.25c/l (including VAT) will be paid on all qualifying litres supplied during the last two weeks of January and for the month of February.

A late lactation bonus will be paid on all qualifying volumes supplied during the month of November each year.

Unlike the early bonus the rate of the Late Lactation Bonus will be determined by the total qualifying volume, up to a maximum late lactation bonus pool payout of €0.5m.

For the current year, the seasonality scheme will operate on the same basis as 2016, with a €2.2m fund allocated across the months of February, October and November.

The rate of payment per litre will be determined by the total qualifying volume in each of the three months.

Glanbia is chasing February and November milk supply as much as possible from its spring milk producing base of suppliers.

To qualify you must supply at least 3% of annual supply in February and November and a maximum of 15% for June.

For the 2018 bonuses it’s 2017 milk supply and it must have a lactose percentage over 4.35%. The early lactation bonus and Late Lactation Bonus payments do not apply to suppliers with liquid and/or winter milk contract volumes.

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