A new pilot milk-payment system that will be introduced by Glanbia from July will be mandatory for all suppliers.
The co-op announced this week that it will issue twice-per-month milk payments to suppliers in a bid to assist farmers with cashflow.
The new policy will commence with the June milk payment in July and will run for six months.
Suppliers will not be able to opt out of the new payment schedule in preference of the status-quo monthly payment, a spokesperson for Glanbia has said.
The board of the co-op said it believes that an early milk payment each month will assist farmers by providing a more regular cash inflow approximately every fortnight.
It said it will review feedback from suppliers before deciding on the payment policy for 2023.
Some details
All suppliers to to co-op will receive an early payment of approximately 50% on the ninth of the month, rather than the 18th.
The early payment value will be calculated based on the previous month’s announced price. It will be adjusted for constituents and any applicable bonus payments.
And, once milk price for the month is set, the remaining balance due to suppliers will be paid by the 25th of the month, the co-op has said.
Any deductions due on milk accounts will be split evenly between the two payment dates, which will assist farmers with high levels of deductions.
A remittance note will be issued for the early payment, while the monthly milk statement will be issued after the final milk payment.