Glenbia Co-op has confirmed that no peak milk supply penalties will be imposed for 2023.
T said the decision was due to milk supply to Glanbia for the peak milk supply week of 2022 being 2.3 pc lower than last year and 5 pc lower than forecast.
Glanbia said several issues will affect milk supply growth in 2022, including record agricultural input costs, labor shortages and other factors.
In addition, it said that both the voluntary retirement scheme and investment in processing facilities have successfully provided Glenbia Co-op with additional peak processing capacity that will be available in 2023.
John Murphy, president of Glenbia Co-op, said following an analysis of milk supply trends for the milk supply period, the board was ‘delighted’ to give milk suppliers ‘certainty’ on policy for next year.
“We had seven consecutive years of growth in milk supply following the abolition of EU milk quotas in 2015, before this year’s modest reduction. We are now entering a period of more moderate supply growth as farmers continue to grow their farms. adapt the system and adjust to the changing policy landscape.”
Glenbia Co-op said the peak supply policy for 2024 would be ratified after the completion of the milk plan census of all milk suppliers in the coming months.
“Subject to the outcome of that process and the successful commissioning of a continental cheese plant in Bellevue, the board’s ambition is to accommodate sustainable developments in milk supply and to remove the threat of extreme supply penalties,” it said.
It also highlighted a forecast in the recently published Food Vision Dairy Group interim report, which saw milk production in Ireland grow at an annual rate of 1.7pc over the period 2020-2030, compared to an annual growth rate of 1.7pc. expected to increase. per year in the period 2010-2020.
Glenbia Co-op said it will continue to accept new milk supply entrants from existing cooperative members. However, it said the acceptance would be conditional on fulfilling the conditions of the Glenbia Milk Procurement Policy, including the required consistency parameters.