Glanbia Co-operative Society has pledged to support its members with funding worth €35.6m in a bid to counteract “very challenging” market conditions.
This latest support package is in addition to an estimated €30 million support paid to members of the society for 2015, taking the total amount of support pledged past €65m over two years.
During this year, the society’s 15,000 members will share at least €21m of milk price support, equating to an average of at least 1% per litre on all milk supplied; patronage support worth an estimated €4m, consisting of a rebate of €7 per tonne on all feed and fertiliser purchased from Glanbia by its members, €5 per tonne on green grain and €2 per tonne on dried grain; as well as a special dividend totally €10.6m.
The package will utilise a portion of the €67m support fund created by the society’s sale of 4m Glanbia shares in May 2015.
Glanbia Co-operative Society chairman Henry Corbally said: “The current weak state of global dairy and grain markets makes this a very challenging time for members of our society. 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.
“This 2016 support package demonstrates the power of the Glanbia model. Farmer members are paid a competitive market price for their produce, and also benefit from the value created in Glanbia plc.”
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