Glanbia Co-operative Society has announced details of its 2021 Trading Bonus Scheme and has confirmed the continuation of its monthly profit distribution payment for milk supplying members.
In the coming weeks, Glanbia Co-op also said that it will return €6.3 million to 4,500 farmer shareholders under the terms of the 2020 Trading Bonus Scheme.
Glanbia Co-op owns 60% of Glanbia Ireland (GI) and receives a dividend each year which equates to 30% of the milk processor’s annual Profit-After-Tax.
At the formation of GI in 2017, members voted at a special general meeting in Punchestown to ring-fence this dividend for distribution to active farmer members of Glanbia Co-op.
Share of GI Profit
In 2020, milk supplier members of Glanbia Co-op received a 0.4c/L plus VAT payment each month on all milk supplied as its “Share of GI Profit”.
The board of Glanbia Co-op has today confirmed the continuation of the Share of GI Profit distribution for 2021 and announced that members can once again participate in a 2021 Trading Bonus scheme.
Again, the share of GI Profit payment is 0.4c/L plus VAT and is adjusted for the constituents of milk delivered by members.
Commenting, John Murphy, chairman of Glanbia Co-op, said: “Profit made from milk processing business is returned to those whose milk generated it, while the Trading Bonus rewards our members for trading with the business that the majority own, Glanbia Ireland.
“I would like to thank all members for their support of the Glanbia Ireland business during 2020,” he added.
2021 Trading Bonus Scheme
The co-op revealed that the terms of the 2021 Trading Bonus Scheme – which rewards members for purchases made from Glanbia Ireland and its subsidiaries – are unchanged from the 2020 Trading Bonus Scheme.
For milk supplier members of Glanbia Co-op, the 2021 Trading Bonus is potentially worth up to 0.4c/L on all milk delivered in 2021. For grain growers, a Trading Bonus of up to €10/t of grain supplied is available for 2021.
The co-op says that the Milk Supplier Trading Bonus is worth up to €2,000 to a 500,000L supplier spending over 8c/L with Glanbia Ireland this year. Suppliers spending between 5c/L and 7.99c/L will receive a trading bonus worth €1,000.
All qualifying 2021 purchases made from Glanbia Ireland are included in the calculation (purchases made through Purchasing Groups count at 50% for 2021).
At the end of 2021, the total spend will be divided by the total litres of milk delivered to generate a cent per litre input spend for each member.
The applicable Trading Bonus will be paid in February 2022, Glanbia concludes.