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The co-op announced this Tuesday that it would propose a package including three forms of cash support to its members at its AGM on 30 May.
Increased dividend
The dividend paid to holders of ordinary Glanbia Co-op shares is to rise by 30%, to 13c per share. Last year's dividend was 10c per share. This is a €1m increase or €5m in total.
Patronage support fund
A €20m patronage support fund is to provide cash payments to active co-op members who supply to, purchase from or trade with Glanbia Group. If the creation of the fund from the co-op's cash reserves is approved, it will be up to the board to decide the nature and timing of any payments from it. This fund would be in addition to the €30m member support fund for active members approved last year.
Advance milk payment scheme
The co-op has also announced a new edition of its advance payment scheme, offering up to €38m interest-free finance to milk supplier members.
Voluntary participants in the scheme will receive an advance payment of up to 2c/l on liquid and manufacturing milk supply in a month when Glanbia Ireland's base manufacturing milk price, including VAT, falls below 30c/l including VAT (28.46c/l excluding VAT).
"Return payments" will then be deducted from suppliers' milk cheques when the price rises above 31c/l including VAT (29.41c/l excluding VAT).
"The 2018 Glanbia advance payment scheme can provide vital cashflow to our dairy farmer members with interest-free repayments required only in better market conditions," said Glanbia Co-op chair Henry Corbally. "It is a positive and practical response to price volatility that worked very successfully for our participating milk supplier members in 2016."
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