Glanbia has confirmed that around half of eligible milk suppliers have applied for the fixed milk-price support schemes offered by the processor earlier this year.

The board of Glanbia Co-op said that it is “very conscious of the impact of rising input costs, particularly for those milk suppliers with a larger percentage of their milk contracted under Fixed Milk Price schemes (FMPS)”.

In March, the processor announced details of two voluntary measures as a way to support farmers who have over 35% of their total milk supply in fixed-prices schemes.

These were the Fixed Milk Price Support scheme and the Farm Input Cost Support scheme.

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In a statement to Agriland, a spokesperson for Glanbia confirmed that “around half of those milk suppliers who were eligible applied for the support schemes”.

The Fixed Milk Price Support scheme offered an “uplift” of 9c/L to suppliers from around 31c/L to 40c/L for that proportion of their fixed pool.

In order to qualify for this 40c/L fixed milk price in 2022, suppliers will be required to commit the same FMPS volumes in 2023 and 2024 at a base milk price of 38c/L (VAT inclusive), plus constituents and relevant bonuses or payments.

Glanbia also offered suppliers the Farm Input Cost Support Scheme which will provide suppliers with a milk price prepayment of 5c/L on all volumes above the 35% threshold.

This 5c/L support will go into the supplier’s Glanbia Trading Account in a lump sum. It will be deducted from milk supply payments in 2025 and 2026.

Glanbia has operated voluntary fixed milk-price schemes for over a decade. The schemes have been used by milk suppliers to address volatility in the dairy markets.

However, as a consequence of recent world events there is unprecedented volatility in milk pricing, farm input costs and availability.