Glanbia Co-operative Society introduces 2016 member support package
While the global demand for dairy is on the rise, it’s a fluctuating market especially prone to variations. Understanding the difficulties that a lean year can create for dairy producers—many of which are small operations—Irish dairy cooperative Glanbia Co-operative Society Ltd announced the assembly and details of its 2016 Member Support Package valued at approximately €35.6 million ($38.7 million).
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“The current weak state of global dairy and grain markets makes this a very challenging time for members of our Society,” said Henry Corbally, chairman of Glanbia Co-operative Society, in a statement to the press. “The Board of the Society recognises that 2016 looks likely to be a difficult year for our members and has resolved to provide support at this challenging time. We are today pleased to announce details of a 2016 Member Support Package worth at least €35.6m.”
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This support package builds on last year’s 2015 Member Support Package which was valued at €30 million, and is funded using a portion of the €67 million earned by the Society’s sale of four million Glanbia plc shares in mid-2015. According to the statement from the Glanbia Co-operative Society, this year’s package will provide support through several means including:
- At least €21 million in milk price subsidization support (roughly one cent per liter for member-supplied milk in 2016;
- A rebate of €7 per tonne on feed and fertilizer purchased from Glanbia by members in 2016;
- Rebates of €5 per tonne on green grain and €2 per tonne on dried grain (with a €40 per tonne minimum spend);
- A Special Dividend, equating to share interest of 25 cent per share, to all members with a total of €10.6 million.
“This 2016 Support Package demonstrates the power of the Glanbia model,” added Corbally. “Farmer members are paid a competitive market price for their produce, and also benefit from the value created in Glanbia plc.”
