The Glanbia Co-op board has announced that no penalties will be applied to milk suppliers that exceed their peak milk allocations in May or June this year. This comes after the most recent review of milk supply forecasts for 2022.
There will also be no penalty deductions for the small pool of suppliers that exceeded their individual peak allocation for April.
John Murphy, Glanbia Co-op Chairman, commented that, “We believe that the suspension of penalties for April, May and June of 2022 is appropriate given the latest milk supply forecasts and the fact that we have available milk processing capacity as we approach peak. Investments in our facilities means that we can handle additional milk volume this year compared to last year. However, milk supply volumes remain lower than last year, so we believe that it is now appropriate to remove the threat of any penalty for over-supply in the peak period in 2022.”
For the year-to-date, milk supply to Glanbia is running 2.3% behind the same period in 2021, primarily because of the ongoing increase in farm input costs.
Murphy commended suppliers for taking steps to ensure their peak milk supply was in line with their individual peak allocations.
The new Belview cheese plant’s planning approval delay has entailed the initiation of a Peak Management Policy for April, May and June in 2022, 2023 and 2024. This weeks announcements apply to 2022 only, with the Peak Management Policy continuing to apply for 2023 and 2024 as previously relayed.
Milk suppliers should continue to use Glanbia Connect to track their peak supply versus their allocation.