Peak Management - Reserve Pool application pack now online

Dairy GII

The Reserve Pool aims to address, in so far as possible, situations where a farm business is materially impacted by the requirement to introduce a limit on milk supply volumes during the peak supply months of April, May and June in 2022, 2023 and 2024.

Milk suppliers have recently received their Statement of Peak Milk Supply Volumes (2022 – 2024). If a supplier is satisfied that the allocations in this Statement meet their requirements, no further action is required. If they feel they have a justifiable case for an increased allocation as a result of any of the qualifying criteria set out below, they may be eligible to apply to the Reserve Pool.

The Reserve Pool application form is now available in the My Document Library on GlanbiaConnect.com. An application pack has also been posted to all suppliers and is due to arrive in the coming days.


Eligibility for applications

Qualifying criteria to be considered for an allocation from the Reserve Pool include:

1. Land availability (owned/leased) exceeding the land area required to produce the Allocated Peak Monthly Supply Volumes by greater than 25% - in particular where a supplier either purchased land or entered into a long term land lease (5 or more years) in the past three years which has added to the supplier’s milk production capacity relative to the Allocated Peak Monthly Supply Volumes by more than 25%;

2. Existing cow/heifer numbers exceeding the numbers owned by the supplier during the base period (2018 to 2020) by greater than 25%;

3. Recent material investment in farm infrastructure supporting a greater than 25% increase from the Allocated Peak Monthly Supply Volumes;

4. Notifiable herd disease or other relevant issue (e.g. serious or critical illness, accident or injury) in 2018, 2019 or 2020 that materially reduced the Base Peak Reference Volumes;

5. Significant farm structural change.


Please note that farm plans or investment decisions made after the announcement of the Peak Supply Management Policy on 15 March 2021 do not qualify for an allocation from the Reserve Pool. Furthermore, submitting an application does not guarantee an allocation will be available. Milk volume allocations from the Reserve Pool will be based on available milk processing capacity.


Process Governance

Glanbia Ireland has engaged PwC to oversee the allocation of milk volumes from the Reserve Pool which will be based on defined criteria. PwC will make recommendations to the independent Steering Group appointed by the Glanbia Ireland Board to oversee the process. PwC will not be engaging directly with milk suppliers. 

The Steering Group will consist of former Glanbia Chairman Henry Corbally, Glanbia Ireland Company Secretary Gordon Murphy and recently retired Principal Officer in the Department of Agriculture, Paud Evans. The Steering Group will not be subject to influence from individual milk suppliers, the Glanbia Ireland Board or employees.


Application Form

The closing date for receipt of applications is 24 May. Glanbia Ireland is very aware that milk suppliers require clarity on the outcome of the process as soon as possible. However, it will be a number of weeks before there is full visibility of the amount of peak capacity freed up by applications to the Voluntary Retirement Scheme and Voluntary Peak Supply Reduction Scheme. Application forms for these Schemes will be issued in the coming weeks.

The Reserve Pool application form is now available in the My Document Library on GlanbiaConnect.com. An application pack has also been posted to all suppliers and is due to arrive in the coming days.

To find the form online: Log-in > Click ‘MY DOCUMENT CENTRE’ > Select ‘MY FARM DOCUMENTS’ > Click ‘Peak Supply Management Policy’.

Milk suppliers should contact their local Farm Development Manager with any queries.

First Published: 30 April 2021

News

See all articles
Processing