Two of the major buyers of grain in this country – Glanbia and Dairygold – announced grain prices last week. With a few conditions attached to these prices, there was some confusion as to the prices being paid.
In this article, AgriLand hopes to clarify a few things. It should be noted that base prices quoted do not include VAT at 5.4%.
Glanbia
Glanbia announced its grain prices last week (Monday, September 24). It announced a non-member price without a trading bonus and a member price with a full trading bonus.
Using feed barley as an example, the base price at 20% moisture for a non-member, without a trading bonus, was €193/t.
If the farmer selling grain to Glanbia is a member of the co-op, they will receive another €2/t on top of the base price – bringing the price to €195/t.
Farmers who purchase crop inputs from Glanbia will also be paid a bonus. The Grain Supplier Trading Bonus will be paid to a maximum of €10/t, on a gradual basis as described below.
The spend per tonne is including VAT. The bonus paid or base prices mentioned does not include VAT.
- Spend €40-50/t on inputs – €5/t bonus;
- Spend €50-60/t on inputs – €7.50/t bonus;
- Spend >€60/t on inputs – €10/t bonus.
Glanbia suppliers will also be paid a premium payment for transport. This payment changes in 15km increments from a drying location.
Image source: Glanbia
Dairygold
Dairygold announced its grain prices last Wednesday (September 26). Dairygold will pay a base price and a bonus to farmers who traded with the co-op.
For example, €200/t (at a moisture content of 20%) is the base price for feed barley and will be paid to farmers who did not trade with Dairygold when purchasing farm inputs.
Farmers will receive a €5/t bonus where €25/t or more was spent in Dairygold on seed and agro-chemical products. This brings the price to €205/t.