As
exclusively revealed by the Irish Farmers Journal this week, the processor is implementing a reduction to farmers in the Fixed Milk Price scheme as a result of a double adjustment on market prices and farm input costs. Based on the price of inputs such as feed, fertiliser and diesel as well as the milk price, some July milk cheques had been reduced by between 2c/litre and 4c/l.
As exclusively revealed by the Irish Farmers Journal this week, the processor is implementing a reduction to farmers in the Fixed Milk Price scheme as a result of a double adjustment on market prices and farm input costs.
Based on the price of inputs such as feed, fertiliser and diesel as well as the milk price, some July milk cheques had been reduced by between 2c/litre and 4c/l.
A retrospective adjustment, either up or down, in milk price was agreed by Glanbia suppliers when they signed up to the voluntary fixed milk price scheme. However, large reductions to the July price came as a shock to many suppliers.
In a statement on its member website Glanbia Connect, Glanbia has admitted it made a mistake in making such rapid deductions.
“Deductions to reflect these adjustments were made to your July milk payment prior to a detailed communication from Glanbia. We acknowledge that this should not have occurred and are refunding all such deductions with immediate effect.”
Cashflow
Deductions will still be made but they will now be phased over 10 payments over the course of a 12 month period.
“To ease the cash flow implications of these adjustments, we will now spread any required repayments of greater than €100 over the next 12 months (10 equal instalments, with no deduction in your December or January milk account),” the processor said.
Texts will be sent out to affected farmers on Thursday night.
Read more
Farmer anger at cash clawback from Glanbia Fixed milk price schemes
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