Glanbia to issue milk payments twice per month
Glanbia Co-op has confirmed that it will issue milk payments twice per month to assist farmer cash flow.
The board has introduced the measure in response to “extreme and unprecedented” inflation in farm inputs.
The six-month pilot change in the timing of milk payments – which will commence with the June milk payment in July – also includes a new early milk payment each month.
- Commencing this July, the co-op will pay approximately 50% of the payment due to milk suppliers (on the 9th of the month rather than the 18th);
- Once it has set the milk price for the month, the co-op will pay the remaining balance due to milk suppliers by the 25th of the month;
- It will calculate the early payment value based on the previous month’s announced price. It will adjust it for constituents and any applicable bonus payments. 50% of this net milk value will be paid, less 50% of any applicable deductions;
- It will split any deductions due on milk accounts evenly between the two payment dates. The co-op says this will assist farmers with high levels of deductions;
- The co-op will issue a remittance note for the early payment, while it will issue the monthly milk statement after the final milk payment.
Regular cash flow
According to Glanbia Co-op chairman, John Murphy, dairy market prices are currently at record levels.
He says that demand is “strong” due to curtailed milk supply globally.
However, the price and availability of key inputs such as feed, fertiliser and energy are “volatile and uncertain”, which is impacting farmers.
“In this period of extreme input cost inflation, the co-op board believes that an early milk payment each month will assist our farmers by providing a more regular cash inflow approximately every fortnight.”
“The board has agreed to implement this payment structure on a pilot basis for the second half of 2022.”
“The board will review feedback from suppliers before deciding on the payment policy for 2023,” the spokesperson concluded.