Glanbia Co-op to pay €10.9 million trading bonus to members
Glanbia Co-operative Society has confirmed (on February 12, 2019) that a total of €10.9 million will be paid to milk supplier members of the co-op this month as part of its 2018 Trading Bonus Scheme.
The Milk Supplier Trading Bonus will be paid to qualifying members with their January milk payment and is based on 2018 milk supply volumes.
A total of 3,755 Glanbia Co-op members will receive an average Milk Supplier Trading Bonus of €2,850. Two-thirds of trading bonus recipients qualified for the top rate bonus payment of 0.75c/L (plus VAT) on their 2018 milk supply, their reward for spending over 7c/L with Glanbia Ireland last year.
The Trading Bonus Scheme is funded from Glanbia Co-op’s 60% share of the dividend paid by Glanbia Ireland to its shareholders – Glanbia Co-op and Glanbia Plc.
Commenting on this, Martin Keane, chairman of Glanbia Co-operative Society, said that the trading bonus rewards Glanbia Co-op members for trading with the business that the co-operative majority owns – Glanbia Ireland.
“It is an equitable and transparent means of returning a share of Glanbia Ireland’s profit to active farmers.”
2019 Trading Bonus Scheme
In January, Glanbia Co-operative Society announced the details of the 2019 Trading Bonus Scheme.
For milk supplier members of Glanbia Co-op, the 2019 trading bonus is again potentially worth up to 0.75c/L on all milk delivered in 2019 (see table 1 below). For grain growers, a trading bonus of up to €10/t of grain supplied is available for 2019.
The 2019 Feed Trading Bonus will be €10/t on beef, dairy and sheep feed products purchased from Glanbia Ireland by non-milk suppliers, with €3/t available to qualifying Co-op members on purchases of pig feed and straights.
In a change from the 2018 Trading Bonus Scheme, eligibility for feed bonus payments is confined to non-milk suppliers in 2019 (all feed purchases continue to count towards a milk supplier’s total spend for the Milk Supplier Trading Bonus).
As shown in table 1, the Milk Supplier Trading Bonus is worth up to €3,750 to a 500,000L supplier spending over 7c/L with Glanbia Ireland this year.
All 2019 purchases made from Glanbia Ireland – feed, fertiliser, veterinary medicines, dairy hygiene products and farm hardware, etc – are included in the calculation (purchases made through purchasing groups count at 50% for 2019).
Purchases can be made through:
Glanbia members interested in qualifying for the 2019 trading bonus should contact their local Glanbia business manager.
*In order to qualify for the 2018 Milk Supplier Trading Bonus, members must hold a valid Milk Supply Agreement (MSA) with Glanbia Ireland.
**VAT flat rate addition will be paid on milk supplied by non-VAT registered farmers who have confirmed their non-VAT registered status in writing to Glanbia at the rate applicable at the time of payment.
Any shareholder with queries on the trading bonus should contact the Glanbia Co-op shares office on: 058-22241.
If the query relates to a farmer’s trading or milk accounts, they should contact their local Glanbia Ireland representative or the customer service centre (CSC) on: 1890-321-321.
Further information is also available on: www.glanbiaconnect.com.