glanbia

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Glanbia continues to curb peak milk supply until 2024

21 February 2022 - Klaas van der Horst

Irish cooperative Glanbia continues to curb milk supply at peak times of the season, albeit on a voluntary basis. It seems like a special measure in a time of milk shortages, but the company is struggling with the delayed delivery of a new cheese factory that together with A-ware is being built.

Until then, Glanbia Ireland lacks the capacity to process all milk during the spring peak, the company said. Members are not forced to limit their milk supply. Milk that is there is collected. Dairy farmers who voluntarily limit their supply will receive €0,10 for every liter not delivered. Last year, Glanbia allocated €6,7 million to finance this measure. This will be in effect every year until 2024 during the spring peak in milk supply.

In 2016 FrieslandCampina also temporarily carried out a similar measure in. This happened in the autumn and was related to a then overwhelming increase in milk production, in a then more difficult market. In Ireland, milk production is still increasing and there is also sufficient demand for dairy, but Glanbia had to wait longer than planned to increase its processing capacity. The Irish National Trust (An Taisce) filed a lawsuit against the arrival of the new Glanbia and A-ware cheese factory in Belview, resulting in years of wasted time.

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Klaas van der Horst

He is a dairy market specialist at DCA Market Intelligence. He researches market news and trends and interprets developments.

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