Glanbia Cheese announces changes – and bonuses – to NI milk payment policy

Glanbia Cheese has announced a number of changes to its milk payment policy – including a new ‘Mozzarella Cheese Quality Bonus’.

Farmers were informed of the changes at a recent Glanbia Cheese supplier meeting held in Magheralin on April 25, 2018. A letter has also been issued to all of the company’s milk suppliers.

Glanbia Cheese, which lays claim to being the UK’s number one cheese manufacturer, operates plants in Magheralin, Co. Down, and Llangefni, Wales.

The mozzarella manufacturer is a joint venture between Glanbia plc and US-based cheese giant Leprino Foods.

The key changes to the Glanbia Cheese Milk Supply Agreement (MSA) are:
  • A new Quality Bonus of 0.20p/L will be available, based on Red Tractor certification, for butterfat greater than 4.00%, protein greater than 3.2%, TBC less than 25,000 and SCC below 200,000;
  • With effect from April 1, a new volume bonus of 0.15p/L will apply in the 650,000 to one million litre per annum band, while an increased volume bonus of 0.65p/L will apply for over one million litres delivered per annum;
  • Glanbia Cheese will make a payment of 0.25p/L on production volumes for the period April 2017 to March 2018 once a farm compliance visit is successfully completed and an updated MSA signed.

The company, which says it is Europe’s leading mozzarella cheese manufacturer, has confirmed that Red Tractor certification is now an essential customer requirement in order to maximise returns.

As a result, non-Red Tractor accredited milk will incur a penalty of 3.00p/L with effect from September 1, 2018.

Commenting on the changes to the MSA, chief executive Paul Vernon said: “These incremental payments are designed to improve milk quality, increase volumes and enhance returns to suppliers.”