While 94% of Glanbia suppliers have signed up to its Milk Supply Agreement, Sean Molloy said he is ‘troubled’ that 6% haven’t signed up.
“I don’t think that’s a good place to be and it’s not a success. It’s something we need to work on and address the issues that are preventing the last 6% signing up.”
For those who have signed up, he said it had been made very clear from the outset that those who signed were showing significant support for the organisation and would have to be rewarded. “I was very clear that our bonus structure would reflect this. Those suppliers who are supportive of us will be rewarded for their loyalty.”
However, some farmer suppliers on the floor at the IFA Dairy Conference said they were less than happy with this policy.
I don’t think that when you joined Glanbia that you signed up for five years without knowing what you were signing, one farmer asked Sean Molloy. “That’s what we are being asked to do. As regard the 0.5c on the milk supply agreement it is you are using bullyboy tactics and blackmail as it will cost us a fortune not to sign up.”
The conference also heard that there are “250 very genuine Glanbia suppliers” who are not prepared to sign the agreements. “We have all been very good co-operative members for the last 35 years and that’s the thanks we are getting.”