This week the board of Glanbia Ireland, which is made up of representatives of the farmer-owned co-op and the plc, have decided to use a share of co-op returns only to pay for the new reduction scheme.
There has been some disquiet among suppliers that the plc is not taking any share of responsibility for the processing problem.
Figure 1 shows the split of funding between the plc and the co-op once the profit after tax is established.
Up to this week the ‘share of the Glanbia Ireland profit’ and the ‘trading bonuses’ were the two main payouts of co-op funds to farmers.
The peak penalty fund and the retirement fund are just a recycling of money between suppliers. The peak penalty will take money from those who exceed peak volumes and push that money into autumn bonuses.
Previously Glanbia Ireland paid these bonuses. The retirement fund is a deduction from active suppliers recycled to those getting out.