Glanbia cuts 2c/L of March base milk price
Glanbia Ingredients Ireland (GII) has set a March market price of 22c/L including VAT for manufacturing milk at 3.6% fat and 3.3% protein.
This is a reduction of 2c/L on the February market price and according to Glanbia it reflects the weakness in dairy market returns.
Glanbia will pay its member suppliers 24c/L including VAT for March manufacturing milk supplies. This price is inclusive of a 1c/L Glanbia Co Operative Society (“the Society”) support payment to its members and the advance distribution by GII of a 1c/L “Additional Cash Bonus” from Ornua.
Glanbia March Milk price
- Market price : 22c/L
- 1c/L Glanbia Co Operative Society (“the Society”) support payment to its members
- 1c/L “Additional Cash Bonus” from Ornua.
Henry Corbally, Glanbia chairman, said that the Board and management of Glanbia is acutely conscious that the current weakness in dairy market returns, as well as the challenging weather, is extremely difficult for milk suppliers.
“Glanbia appreciates the income challenge and is doing all it can to support our farmer suppliers, particularly through Glanbia Co-operative Member Support payments, our Fixed Milk Price Schemes and the recently launched MilkFlex Fund,” he said.
He confirmed that Glanbia Co-operative Society will pay a Special Dividend (Share Interest) worth a total of €10.1 million to all Society shareholders by early May.
For the average milk supplier shareholder to Glanbia, it says the Special Dividend of 25 cent per share will be worth over €1,000.
This is in addition to the Ordinary Dividend (Share Interest) of 10 cent per share that will be proposed at the Society’s Annual General Meeting in May.
Distribution of Ornua “additional cash bonus”
Following the December 2015 disposal of DPI, a speciality foods distribution business in the United States, Ornua (formerly the Irish Dairy Board) announced on January 13 that it will pay an additional cash bonus of €15m to its member suppliers.
The Board of GII had announced that this additional cash bonus would be distributed by GII to manufacturing milk suppliers as soon as practical after receipt.
However, in light of the extremely challenging Spring being faced by suppliers, the Board of GII has decided to make an advance payment of 1 cpl on all manufacturing milk supplied in March.