Irish dairy co-op announces 2021 profit share and bonus schemes

The terms of the 2021 scheme are unchanged from last year

Irish dairy Glanbia Co-operative Society has announced its 2021 trading bonus, and says it will continue its monthly profit distribution for milk supplier members.

The co-op will also return a further €6.3m (£5.5m) to 4,500 farmer shareholders under the terms of the 2020 trading bonus scheme.

Glabia says its 2021 trading bonus scheme will reward farmer members for purchases made from milk processor Glanbia Ireland (GI) and its subsidiaries, in which the co-op has a 60% stake.

For milk supplier members, the 2021 trading bonus is potentially worth up to 0.4 cents (0.3 pence) per litre on all milk delivered this year. This is equivalent to up to €2,000 (£1,700) for a 500,000-litre supplier spending over 8 cents (7 pence) per litre with GI.

At the end of this year, the total spend will be divided by the total litres of milk delivered to generate a cent-per-litre input spend for each member. The applicable trading bonus will be paid in February 2022.

For grain growers, there’s a trading bonus of up to €10 (£9) per tonne of grain supplied.

Beef and sheep farmer members of the co-op will also qualify for a feed trading bonus of €10 (£9) per tonne on beef, dairy and sheep feed products purchased from GI. And there’s €3 (£2.60) per tonne available to qualifying co-op members on purchases of pig feed and straights.

Eligibility for feed bonus payments is confined to non-milk suppliers in 2021.

The dividend the co-op receives from GI, which equates to 30% its annual profit after tax, is ring-fence for distribution to active farmer members of Glanbia Co-op.

Last year, Glanbia paid a total of €12.9m (£11.3m) to milk suppliers as their share of GI profit. The share of GI profit payment for 2021 is 0.4 cents (0.3 pence) per litre (plus VAT) and is adjusted for the constituents of milk delivered by members.