Glanbia unveils measures to combat delays to new €140m cheese plant
Kilkenny-based food giant has announced announced changes to o manage the rate of growth in peak milk supplies from next year.
The move comes in response to delays in the construction of the company’s new €140 million cheese manufacturing plant at Belview Port in the south of the county.
Last November An Taisce launched a legal bid against the granting of permission to build the facility. The court action has seriously delayed the project, which has resulted in a knock-on effect for Glanbia’s milk supplier farmers.
In a statement, Glanbia acknowledged the delay in bringing the new cheese plant into production is having a huge impact on farming families.
Announcing a €6.7 million Voluntary Peak Reduction scheme which will be funded by Glanbia Co-operative Society, Mr Murphy said: “We find ourselves in a place none of us want to be. Our investment plans are delayed as a consequence of a Judicial Review of a planning approval for our proposed Belview JV facility.
“Our existing facilities and cooperation with other processors can facilitate some milk volume growth at peak, but not at the level that matches our farmers’ production plans for next year,” Mr Murphy added.
The Voluntary Reduction Scheme will allow suppliers to voluntarily commit to reducing peak milk supplies by a minimum of 10% based on their 2020 supply volumes for a three year term.
Glanbia has also introduced a new category for suppliers under 400,000 litres to allow these farm families to grow their operation at a rate of 10% each year for the duration of this policy.
The company has also agreed to adjust he April supply profile upwards from 11.3% to 11.7% to allow more flexibility for producers adjusting their milk supply curve.