Glanbia sets out plans for grain following discussions
In a statement to AgriLand, Glanbia Ireland set out its plans to “help secure the future of its members and loyal grain suppliers, who have faced numerous pressures in recent years”. The company also reviewed its grain prices.
The statement comes after protests by the Irish Farmers’ Association (IFA) outside Glanbia in Portlaoise, Co. Laois, and Clonroche, Co. Wexford, were lifted today, October 11.Also Read: Updated: IFA grain protests lifted outside Glanbia
Over the past number of days, Glanbia Ireland and the IFA have been in discussion on measures to help place the sector “on a more secure footing for the future”.
“A package of initiatives worth €500,000 over the next three years will be put in place to work towards creating more opportunities for our members and loyal grain suppliers. This will build on the opportunities already delivered from the new gluten-free oats contracts offered in recent weeks.”
Chief agri-business growth officer, Seán Molloy, said: “In addition to addressing short-term challenges, Glanbia Ireland will look to the future with a long-term development plan that will create opportunities for our grain growers.
“Glanbia Ireland’s grains business will benefit from the increased access to international marketing teams and commercial capabilities through the integration of the company.
“Glanbia Ireland will engage with the relevant state organisations such as Bórd Bia, Teagasc and Enterprise Ireland to explore opportunities and supports for research, market development and promotion of Irish-grown grain.
“Glanbia Ireland’s intake of native Irish grain this harvest was over 200,000t, 40% ahead of last year and well ahead of the 24% growth in national harvest.”
Grain prices reviewed
The company also outlined a review of harvest grain prices for 2019.
“Glanbia Ireland is recognising the loyalty of its grain suppliers with an extra payment of €3/t on feed wheat and feed barley, including contracted winter Cassia barley, supplied by our co-op members. The monies will be aligned to input purchases, however, it will run separate to our established patronage model.
“As a result the composite Glanbia members’ price per tonne for green barley will be €144/t, including €3/t co-op support and a €10/t trading bonus.
“After reviewing market progress since grain price was set, Glanbia Ireland has increased the differential between wheat and barley from €7/t and €9/t on members’ feed grains. This means the composite price of Glanbia members’ feed wheat will now be €153/t.
“Loyal grain suppliers, who are not Glanbia Co-op shareholders, will also receive €1/t on green feed wheat and feed barley supplied. This will be linked to the level of input purchases bought from Glanbia Ireland. In addition, non-members will benefit from the increased differential between wheat and barley.”
Post-harvest prices and forward selling
The statement continued: “There has been strong uptake of our Farmers Own Stock scheme and the closing date has been extended to October 18, 2019, to increase opportunities for growers to avail of this valuable mechanism. It offers farmers the potential to avail of the possibility of increasing grain prices post-harvest.
“Furthermore, Glanbia Ireland will explore the potential to develop a market-based review mechanism. It will seek to build on Glanbia’s recognised capabilities in volatility management schemes.
“Glanbia Ireland will also work to ensure that grain suppliers fully utilise the opportunities that forward selling contracts can bring to provide growers with a more secure footing.”