Glanbia is to update its milk suppliers on individual allocations of peak milk supply reserves under its peak milk supply management mechanism.
The mechanism, announced earlier this year, back in March, will see suppliers needing to rein in increases in milk supply during peak season next year and in 2023.
However, the move also saw the creation of a “Reserve Pool” that will allocate additional peak volumes to ‘exceptional cases’ where, for example, there has been a notifiable herd disease outbreak in the base period.
This Reserve Pool will also be open to applications from expanding suppliers that meet a defined set of criteria.
In an update on this, a spokesperson for Glanbia told Agriland that:
“The process to allocate available milk volumes from the Reserve Pool to individual milk suppliers is now effectively complete and final documents are currently being reviewed by PWC, who were engaged by Glanbia Ireland to oversee the process.
“It is our intention at this point that individual allocations from the Reserve Pool will be communicated to milk suppliers from end of the next week onwards.”
Meanwhile, Glanbia Ireland also launched a once-off, voluntary retirement scheme for interested suppliers under the peak management mechanism.
This scheme offered a financial incentive to suppliers who cease milk production no later than January 1, 2022.
Peak milk volumes retired by milk suppliers availing of the scheme will be used to contribute to the ‘Reserve Pool’.
The Retirement Scheme will be funded through a contribution of 0.075c/L from all Republic of Ireland milk supplies over a five-year period from 2022.