In this week's
AgriBusiness report, the team strip back the grain price being paid by Glanbia Ireland. At a base of €133/t for green barley, we see the largest buyer of grain in the country, with just over 10% of the market, paying €7/t less than other grain buyers. The fact that the co-op has decided to pay members an additional €14/t top-up should be removed from the conversation. The decision by the co-op to provide this support should not cloud the conversation when assessing the capacity of senior management in Glanbia Ireland to run a competitive business.
In this week's AgriBusiness report, the team strip back the grain price being paid by Glanbia Ireland. At a base of €133/t for green barley, we see the largest buyer of grain in the country, with just over 10% of the market, paying €7/t less than other grain buyers.
The fact that the co-op has decided to pay members an additional €14/t top-up should be removed from the conversation. The decision by the co-op to provide this support should not cloud the conversation when assessing the capacity of senior management in Glanbia Ireland to run a competitive business.
Given the extent to which the base price is off the pace with the market, farmers are rightly questioning if the €14/t co-op support is in effect a €7/t member support package and a €7/t subsidy to the Glanbia Ireland joint venture.
If the co-op sees merit in supporting the grain price to the tune of €14/t, it should in no way distract from the need for Glanbia Ireland to be competitive in the market.
As support packages and forward pricing models become more complex, farmer board members must ensure we always retain the necessary transparency required to assess the true performance of senior management teams.
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