The company stated that they wish to fix milk prices for the next five years, as well as reward farmers with a loyalty bonus.
The deal will see suppliers paid 31 cents per litre for their milk supplies, with 10% of the milk supply the minimum requirement. As part of the deal milk supplies must be of 3.6% butterfat and 3.3% protein.
Dairy farmers will also receive a loyalty bonus, should they continue purchasing feed from Gain Animal Nutrition. This bonus is set at €30 per tonne and payment of the bonus is separate from the scheme.
As part of the loyalty bonus deal suppliers will be obligated to buy 100% of their feed for their dairy herd over the 5 year period. The deal is set to commence in January 2018 and will run up until the 31st of December 2022. It is available to all milk suppliers currently supplying to Glanbia.
The director of strategy and supply development for Glanbia, Sean Molloy, welcomed the news. He said the new scheme will benefit farmers huge risk managements, while the loyalty scheme he said will offer traceability unrivalled in the market.