Glanbia is to hold its manufacturing milk price to at least 30.5c/L (incl VAT) for the first three months of 2015.
In the announcement it says that it has taken a decision to provide support, if necessary, so that the base February and March manufacturing milk price for members who have signed a Milk Supply Agreement (MSA) will not fall below the current level (30.5c/L including VAT).
Fixed Milk Price Scheme
It also announced its fifth Index-Linked Fixed Milk Price Scheme. As previously indicated this scheme is voluntary, is available to suppliers who have signed an MSA and will run from April 2015 to March 2018.
“At standard constituents and including VAT the base milk price under the scheme is set at 32.61c/L (at average Glanbia constituents the base milk price would equate to 34.5c/L). Details of the scheme will be circulated to suppliers in the coming weeks,” a spokesperson said.
Glanbia recently announced that it would pay out a total of €1.2m in Late Lactation Bonuses to qualifying suppliers. This amounts to 3.8c/L for October and November supplies.
Commenting, Chairman Liam Herlihy said Glanbia is pleased to commence the payment of 2014 bonuses to members as proposed by the Board and approved by members at the recent SGM.
“More importantly, we believe the certainty now being provided on milk price for the first quarter of 2015 will underpin farmer confidence at this important time.”