The background context is that milk supply to Glanbia for the peak milk supply weeks of 2022 was 2.3% lower than last year and 5% below forecast. A number of issues have impacted on milk supply growth in 2022, including record farm input costs, labour constraints and other factors. Furthermore, both the voluntary Retirement Scheme and investments in processing facilities have successfully delivered additional peak processing capacity to Glanbia Co-op which will be available in 2023.
Glanbia Co-op Chairman John Murphy said: “Following a prompt analysis of milk supply trends for the peak milk supply period just completed, the Board is pleased to give milk suppliers certainty on the policy for next year. Before this year’s slight reduction, we had seven successive years of milk supply growth following the abolition of EU milk quotas in 2015. We are now entering a period of more moderate supply growth as farmers optimise their farming systems and adjust to the changing policy landscape.”
The Peak Supply Policy for 2024 will be confirmed following the completion of a Milk Planning Census of all milk suppliers over the coming months. Subject to the outcome of that process and the successful commissioning of a continental cheese plant at Belview, the Board’s ambition is to accommodate sustainable growth in milk supply and remove the threat of peak supply penalties.
As set out in the Food Vision Dairy Group interim report published last week, milk production in Ireland is expected to grow by a compound annual rate of 1.7% over the period 2020-2030 as compared to an annual growth rate of 4.8% per annum over the period 2010-2020.
Glanbia Co-op will continue to accept new milk supply entrants from existing Co-op Members. Acceptance will be conditional on meeting the terms of the Glanbia Milk Purchasing Policy, including the required sustainability parameters.
