Glanbia's latest Fixed price scheme

frazzledhome

I see there's a new offering @29c including all coop payments for first 18 mths and volume doubling for last 18mth excluding any coop payments.

I have no issue with a new scheme and would welcome it.

My concern is the first 18 mths without coop top ups. I think by allowing this we are effectively barring us from coop payments. We are coop members and this crossover shouldn't be tolerated imv.

GIIL is a joint venture with the Plc and therefore shouldn't interfere with the actions of the coop.

Any thoughts from Glanbia suppliers. If we could leave to Glanbia shareholders only I'd appreciate that very much.

atlantic mist

few concerns

think they could have achieved better price, negotiation skills need improvement

whats the logic behind doubling supply for last 18 months? why not offer it all straight away, the sales and marketing department must be going to work in 18 months to say were doubling supply to scheme by then

why wasnt the same applied to liquid producers in last fixed price scheme, doubling their supply at a price of 29c, the liquid lads seem to be looked after a bit better than manufacturing, or may be they just have stronger representation, 50% kept solely for them in last scheme thats not right coop largest shareholder in gii yet plc calling the strings keeping supply for their liquid lads, wonder will agri business sneak into fixed price scheme?

Who is this scheme for is it consumer foods?

mf240

If the price recovers in 2018 you will be supplying twice as much at 29 and your gains from this year will be more than lost.

It's nearly always better to be fixing at the peak of a price and committing at a slightly lower price than the reverse.

It's not really supposed to be a win or lose but more a flattening of the market.

frazzledhome

My specific question is in relation to not getting coop top up, how do you feel about it.

I think any decision by the coop should be seperate.

Are we setting a dangerous precedent?

Is it a non issue?

mf240

Is it not the case that the 29 includes the Co op top up more so than your not getting the bonus iykwim.

farmersfriend

frazzledhome wrote: »

I see there's a new offering @29c including all coop payments for first 18 mths and volume doubling for last 18mth excluding any coop payments.

I have no issue with a new scheme and would welcome it.

My concern is the first 18 mths without coop top ups. I think by allowing this we are effectively barring us from coop payments. We are coop members and this crossover shouldn't be tolerated imv.

GIIL is a joint venture with the Plc and therefore shouldn't interfere with the actions of the coop.

Any thoughts from Glanbia suppliers. If we could leave to Glanbia shareholders only I'd appreciate that very much.

I think that glanbia is making it too complicated. The top up should be an extra, should not be excluding any milk from it. We had to buy shares to get top up.
Gii are always saying that co op top up is not part of the gii milk price.
Have milk in a couple of the schemes and content with it.

atlantic mist

coop money should be kept separate, why are gii handling coop monies in the first place?

why is the top up based on litres supplied, is the mantra not solids these days?? need to start breeding a bit more holstein make better use of the schemes

pushing plc agri business in last scheme, selective suppliers for 50% of contracts and loosing coop top ups in this latest scheme, paying on liters not solids, seems to be plenty of scheming still going on at board level