Glanbia launches 5-year, fixed-price milk contract and loyalty scheme
Glanbia Ireland has released details of a new Milk and Feed Loyalty Scheme (Glanbia Loyalty Scheme).
It includes a five-year, fixed price milk supply agreement and a €30/t loyalty bonus on concentrate dairy feeds purchased from Gain Animal Nutrition.
This voluntary scheme will pay a fixed base milk price of 31c/L (including VAT) at 3.6% butterfat and 3.3% protein, plus a ‘Feed Adjustor’ valued at between 2 and 3c/L (cpl) for those taking part in the dairy feed element of the Glanbia Loyalty Scheme (the Feed Adjustor amount varies depending on the volume of milk committed to the scheme and the level of feed usage).
As well as utilising the fixed base milk price (31c/L including VAT), participants in the new scheme can also accept an optional dairy feed component. This includes a €30/t loyalty payment on concentrate dairy feeds from Glanbia Ireland’s Gain Animal Nutrition range.
Glanbia Chairman Henry Corbally explained: “The Glanbia Loyalty Scheme for milk and dairy feed prices is another international first for Glanbia.
I’m delighted that we are in a position to provide milk suppliers with a guaranteed milk price for a period of five years, extending well beyond what is currently offered in any other jurisdiction.
“I’m sure this is a scheme that will be welcomed by many farmers during a period of significant political and economic uncertainty.”
Sean Molloy, Director of Strategy and Supply Development with Glanbia Ireland, also commented, noting: “As well as huge risk management benefits for farmers, the new Glanbia Loyalty Scheme offers customers unrivalled traceability.
The establishment of this cohort of farmers allows Glanbia Ireland [to] promote the ‘closed loop’ procurement concept – in terms of product claims and marketing initiatives.
“A ‘closed loop’ offers customers an exceptionally high level of assurance around the traceability and high quality of our dairy products, with all milk produced from grass and feeds sourced from our own Glanbia Ireland feed mills.
“This offers unrivalled assurance on the quality and integrity of the products,” the director claimed.