Glanbia has announced a €60m support package for its members, subject to approval at its upcoming AGM.
The total package of measures includes:
- 30pc increase in 2018 Ordinary Share Interest (Co-op dividend) to 13 cent per share;
- €20m Patronage Support Fund for active Members; and,
- 2018 Glanbia Advance Payment (GAP) Scheme €38m.
The co-op said the proposed package is designed to increase cash flow to its Members by up to €60m. The measures include proposals to increase the ordinary share interest (Co-op dividend) by 30pc and a new Patronage Support Fund of €20m for active Members as well as the launch of the 2018 Glanbia Advance Payment Scheme.
Members of Glanbia Co-op will vote on the proposals related to the Co-op dividend and the Patronage Support Fund at the upcoming Annual General Meeting (AGM) of Glanbia Co-op which takes place at Newpark Hotel, Castlecomer Road, Kilkenny on Wednesday, May 30.
Ordinary Share Interest (Dividend)
The Board of Glanbia Co-op will be recommending to the Co-op’s AGM a significant increase in the Co-op dividend paid to all Members. If approved by Members, the Co-op dividend will increase by 30pc to 13 cent per Glanbia Co-op share (the ordinary dividend in 2017 was 10 cent per share).
€20 million Patronage Support Fund
The Board of Glanbia Co-op will also seek Members’ approval at the upcoming AGM for the creation of a new Patronage Support Fund through the allocation of €20m to the Fund from the Co-op’s existing cash resources.
The Patronage Support Fund will be for the benefit of active Members who supply to, purchase from or trade with the Glanbia Group. If approved, the nature and timing of any payments from this Fund will be at the discretion of the Board of Glanbia Co-op. This new Patronage Support Fund will be in addition to the existing €30 million Member Support Fund for active Members which was approved by Glanbia Co-op Members at a Special General Meeting held in Punchestown in May 2017.
2018 Glanbia Advance Payment Scheme
Glanbia Co-op has also launched the 2018 Glanbia Advance Payment (GAP) Scheme, offering up to €38m interest-free cash flow support to milk supplier Members.
Glanbia Co-op Chairman Henry Corbally said if approved, the 30pc increase in the ordinary share interest (dividend) paid by the Co-op will benefit all Members.
Source: Farm Ireland