No peak supply penalties will be imposed by Glanbia in 2023, the co-operative has confirmed.
In a major volte-face, Glanbia management confirmed on Monday that it was suspending its controversial peak supply policy for 2023.
The country’s largest milk processor has also indicated that supply restrictions could be abandoned for 2024.
Explaining the move, Glanbia Co-op pointed out that milk supply during the peak weeks of 2022 was 2.3% lower than last year and 5% below forecast levels.
Additional capacity
In addition, the co-op explained that investments in processing facilities have delivered additional peak capacity for 2023, while the development in Belview of a continental cheese plant with Dutch firm Royal A-ware will add to the demand for milk into the future.
Glanbia chair John Murphy said the co-op’s peak supply policy for 2024 would be confirmed following the completion of a milk planning census of Glanbia’s 4,600 milk suppliers over the coming months.
Subject to the outcome of that process and the successful commissioning of the Belview plant, Glanbia stated that its ambition was to accommodate sustainable growth in milk supply and “remove the threat of peak supply penalties”.
Glanbia introduced its peak milk supply policy in March 2021. It limited milk supply growth during the peak months from April to June.
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