Wheat grain being loaded into trailer. \ Ramona Farrelly
ADVERTISEMENT
In this week's AgriBusiness report, the team strip back the grain price being paid by Glanbia Ireland. At a base of €133/t for green barley, we see the largest buyer of grain in the country, with just over 10% of the market, paying €7/t less than other grain buyers.
The fact that the co-op has decided to pay members an additional €14/t top-up should be removed from the conversation. The decision by the co-op to provide this support should not cloud the conversation when assessing the capacity of senior management in Glanbia Ireland to run a competitive business.
Given the extent to which the base price is off the pace with the market, farmers are rightly questioning if the €14/t co-op support is in effect a €7/t member support package and a €7/t subsidy to the Glanbia Ireland joint venture.
ADVERTISEMENT
If the co-op sees merit in supporting the grain price to the tune of €14/t, it should in no way distract from the need for Glanbia Ireland to be competitive in the market.
As support packages and forward pricing models become more complex, farmer board members must ensure we always retain the necessary transparency required to assess the true performance of senior management teams.
Register for free to read this story and our free stories.
This content is available to digital subscribers and loyalty code users only. Sign in to your account, use the code or subscribe to get unlimited access.
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
CODE ACCEPTED
You have full access to the site until next Wednesday at 9pm.
CODE NOT VALID
Please try again or contact support.
In this week's AgriBusiness report, the team strip back the grain price being paid by Glanbia Ireland. At a base of €133/t for green barley, we see the largest buyer of grain in the country, with just over 10% of the market, paying €7/t less than other grain buyers.
The fact that the co-op has decided to pay members an additional €14/t top-up should be removed from the conversation. The decision by the co-op to provide this support should not cloud the conversation when assessing the capacity of senior management in Glanbia Ireland to run a competitive business.
Given the extent to which the base price is off the pace with the market, farmers are rightly questioning if the €14/t co-op support is in effect a €7/t member support package and a €7/t subsidy to the Glanbia Ireland joint venture.
If the co-op sees merit in supporting the grain price to the tune of €14/t, it should in no way distract from the need for Glanbia Ireland to be competitive in the market.
As support packages and forward pricing models become more complex, farmer board members must ensure we always retain the necessary transparency required to assess the true performance of senior management teams.
If you would like to speak to a member of our team, please call us on 01-4199525.
Link sent to your email address
We have sent an email to your address. Please click on the link in this email to reset your password. If you can't find it in your inbox, please check your spam folder. If you can't find the email, please call us on 01-4199525.
ENTER YOUR LOYALTY CODE:
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
SHARING OPTIONS