Glanbia Co-operative Society (the Co-op) this week announced the creation of a €55 million Glanbia Advance Payment Scheme that will offer interest free cashflow support to member suppliers in periods when milk and grain prices are weak.
Participation in this voluntary scheme will allow members to draw down cashflow support from the Glanbia Advance Payment (GAP) Scheme when the market prices for milk and grain fall below specific levels or “price triggers” set annually by the Board of the Co-op.
The interest free repayments to the GAP Scheme will be triggered when markets recover above specific levels.
The Glanbia Advance Payment (GAP) Scheme is a dynamic volatility measure which will be in place between May 2016 and December 2020.
The GAP Scheme is the latest in a suite of innovative mechanisms developed by Glanbia to help its member suppliers cope with income volatility.
Other mechanisms in place include Fixed Milk Price Schemes, the €100 million MilkFlex Loan Product and the 2016 Member Support Package of €37 million.
The announcement was made today by the Chairman of Glanbia Co-operative Society, Henry Corbally and the Minister for Agriculture Food & the Marine, Michael Creed TD.
