Chairing the first of the annual regional Glanbia supplier meetings in Clonmel, Co Tipperary, vice-chair Pat Murphy explained that Glanbia co-op will introduce a monthly milk payment of 0.4c/l to all members for 2020 and an “entry fee” for new units.

New dividend

Explaining the new monthly unconditional payment, group secretary Michael Horan said: “This is part of the Glanbia Ireland dividend that is ringfenced for the co-op. In 2018 and 2019, this was distributed as a conditional trading bonus and Glanbia is finalising a €14m payout for mid-February for trading completed with the co-op in 2019.

Now, the co-op’s share of the Glanbia Ireland dividend will be split two ways – a trading bonus and a new monthly, unconditional payment of 0.4c/l on all milk.

New levy

Glanbia has also introduced a new annual “new entrant” levy of 0.5c/l over a base 250,000 litres and a “new unit” levy of 1c/l for existing suppliers that set up an additional unit. This must be paid for five years.

There had been speculation and discussion around a 2c/l charge on all new milk into Glanbia. However, if the new entrant or new unit trades with Glanbia to certain minimum levels, there will be no annual levy.

This new entrant levy has been debated for the last six months at area and regional meetings

There is to be no levy for growth from existing suppliers as long as they stay in line with forecasted milk volumes in Glanbia census forms.

Responding to questions from the floor, Murphy said: “This new entrant levy has been debated for the last six months at area and regional meetings and the message was loud and clear – we are a co-op and youth and young people are needed.”