Glanbia positive on milk market outlook

There were positive messages at the first of Glanbia’s annual supplier meetings in Clonmel on Tuesday.

Vice-chair Pat Murphy opened the meeting, introducing the speakers - Glanbia Ireland CEO Jim Bergin and Glanbia group secretary Michael Horan.

Glanbia Ireland CEO Jim Bergin said: “Skim is up €1,000/t on where it was in 2019, butter fell back and is probably the product we would worry about most looking into 2020, but, overall the value of the mix has improved. The board today decided to increase December milk price by 1 c/litre and we see it as solid around that.”

Growth

Alongside details of supply growth management, Jim outlined how Glanbia is trying to grow value and explained it has 137 people selling its product in the domestic market, the Middle East, Africa, China and the US. He said the oats portfolio is expanding, a new research and development centre for 48 people is well under development in Ballyragget, new initiatives with European co-ops such as Royal Aware are ongoing and as an organisation it is embracing digital with initiatives such as mymilkman.ie.

Nobody’s happy, and rightly so, but the wheels are not off the wagon

Details of Glanbia’s expected growth in supply, growth challenges and a brief outlook of the issues affecting milk prices were discussed at the meeting. Glanbia is expecting more moderate growth in milk supply over coming years.

Horan outlined the already much publicised revised 88c/share to 92 c/share dividend, suggesting no growth or a flat earnings per share for 2019. He said: “Nobody’s happy, and rightly so, but the wheels are not off the wagon.”

The second of nine meetings with take place on Wednesday in Kilkenny and the third in Dungarvan on Thursday. All Glanbia Ireland shareholders are encouraged to attend.

More on Thursday in the Irish Farmers Journal and on farmersjournal.ie.

Read more

Glanbia sets milk price for December

Glanbia grain bonuses not to be paid until February