Glanbia Co-op has become the latest processor to announce that it will not take up a fixed milk-price contract support offer from Ornua.

In a statement, a spokesperson for Glanbia said that the processor is continuing to engage with suppliers who are involved in its fixed milk-price schemes.

They added that the discussions are not fully concluded yet.

“We are hopeful of further constructive moves by our customers,” the Glanbia spokesperson added.

image-source glanbia

The statement follows confirmation from Dairygold that it will not be progressing the offer with its suppliers.

“Ornua is offering support of less than 1c/L on 2022 milk volumes included in Dairygold’s fixed milk-price schemes. This support is conditional on Dairygold suppliers committing to additional fixed milk-price volumes in 2023 at 42c/L,” a spokesperson told Agriland.

“The fixed milk-price of 42c/L offered by Ornua for 2023 is significantly lower than the current market expectations, so a milk price in 2023 of greater than 42c/L will see Ornua recoup all or a significant portion of the support offered this year.

“On this basis, Dairygold will not be progressing the Ornua offer with members,” the spokesperson concluded.

Earlier this month, Ornua announced that it had offered 10c/L on 10% of the fixed-product volume that it currently purchases from its member co-ops, back to those co-ops for 2022.

The company said that the measure aimed to provide a flexibility to help ease the financial strain being experienced by some farmers who have fixed milk-price contracts.

In 2020, Ornua purchased 400 million litres from its eight member co-ops, which includes Dairygold and Glanbia.