Prepare now for twice-monthly milk payments

As announced on 12 April, Glanbia Co-operative Society is implementing a six-month pilot change to the timing of milk payments, which includes a new early milk payment each month.

With effect from next month (relating to your June milk supply), there will be two, rather than one, milk payments each month.

Milk suppliers are advised to check their banking arrangements to ensure a smooth transition to the new process. Some milk suppliers may need to consider adjusting the timing of some of their deductions or make some changes to their banking facilities in order to align with the new schedule.

Depending on the number and type of transactions going through your current account and their schedule within the month, the following may need to be reviewed:

• The date on which a standing order is deducted can generally be amended by the customer though online banking, at a kiosk in a branch or by talking to your bank’s customer service centre;
• You may wish to change the date on which direct debits take place for third-party bills such as utilities, insurance and other services – these would need to be changed at source by contacting the company that is deducting the payment;
• Loan agreements – if you need to change the date of a loan repayment, you should contact your local branch, or your bank’s relationship manager.
• In many cases, reviewing the working capital facilities (eg overdraft or seasonal facilities) in place on your current account may be the only action required.

Background

From a Glanbia Co-op perspective, the main reasons for the change to twice-monthly milk payments are as follows:

• A new early milk payment each month will directly boost cashflow for farmers who have complained in the past of waiting too long to be paid for milk supplied up to six weeks previously;
• Milk and grain prices are currently at record highs; the June milk payment by Glanbia Co-op is likely to exceed €200m based on current milk price indications. Twice monthly payments has a positive cashflow impact for the business, by reducing peak borrowing which generally follows the milk supply curve. As a fully farmer-owned Co-operative, any measure that aids the organisation in terms of cashflow management also benefits farmer owners.
• By setting milk price later in the month, the Board will benefit from a more informed view of market developments, which can be significant in periods of price volatility.

The Board remains committed to paying the best possible price for milk each month.

The new policy will operate as follows:

• Commencing this July, approximately 50% of the value of the milk supplied less deductions, will be paid early (on the 9th of the month rather than the 18th);
• The early payment value will be calculated based on the previous month’s announced price. It will be adjusted for constituents and any applicable bonus payments. 50% of this value will be paid, less 50% of any applicable deductions;
• Once the milk price for the month is set, the remaining balance will be calculated and paid to milk suppliers on the 25th of the month;
• The precise payment dates are below and follow the principle of payment on the 9th and 25th unless either of those dates fall on a weekend or Bank Holiday, in which case payment happens on the next business day:

How to acces your interm payment remittance statement online

1. Log into the secure “My Account” section on www.glanbiaconnect.com
2. Your interim payment remittance statement can then be located by selecting “Milk Supply >> Milk
3. Statements” from the dropdown menu in “My Dashboard”
4. You can download and view your interim payment remittance statement from this page.

Payment calendar

First Published 14 June 2022