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The National Dairy Council, funded by the Dairy farmers of Ireland, are charged with Marketing our product on a national basis. They now have launched their Buy Localy Farmed Milk Advertisment which will promote the new logo, which is on all milk which is farmed in Ireland. 
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Fresh Milk Producers (FMP) are a producer group representing all liquid milk suppliers to Glanbia. We have 11 member producer groups covering Leinster and Munster, please see Contacts for your local group. The FMP structure revolves around the local producer groups with each producer group sending representatives to the Central Executive (click here to see details), the Central Executive then has a management committee consisting of 17 members who deal with more sensitive issues. The Negotiation Team of 4 men is elected from the Central Executive, who along with the Secretary, negotiate with Glanbia on your behalf to secure the best deal. Under our remit, we negotiate the price paid to our members and ensure through our Joint Quality Team that not only do we produce the best quality milk but that we work with Glanbia to solve any potential problems and ensure none of our members are treated unfairly. As you can see below, this has influence our share of the retail milk market as the quality comes through in the taste and consistency. The FMP Central Executive meets once a month, this comprises of elected representatives from each producer group and invited attendees. Glanbia Liquid Suppliers have achieved the highest Liquid price from the major processors in Ireland on an annualised basis consistently for the last number of years. Proposed New Payment Structure for Liquid Milk in Glanbia Fresh Milk Producers(FMP) Chairman Eamonn McEnteggart has welcomed the strong turnout to the Local Producer Group meetings. “We have been negotiating this deal for 18 months, and it is now at a point where we are putting it to our members. The changes proposed are far reaching and radical” said the Chairman “The group reaction is positive to the new payment structure for Liquid Milk. However to ratify the negotiated deal officially a Central Executive will be held in August.” Traditionally Liquid Milk in the Glanbia group has been supplied and paid for on a flat rate system going back to the groups’ inception in 1937. “This move to an A+B-C payment structure is a momentous leap and a huge change for liquid suppliers to Glanbia. We have traditionally focused on quality and volume, however under the new structure constituents will have considerable influence on the price the farmer receives for his milk,” said Mr McEnteggart. “Under the new proposals our breeding and feeding systems will have to evolve to take into account the constituents in one’s milk supply. This will take considerable time and effort on the ground to attain.” “All processors because of consumer demand are now more focused on Butterfat and Protein than ever before, and we must recognise that we are part of a Dairy industry where supply will inevitably increase and as a result a larger portion of our milk will end up in a commodity market which is structured totally around the saleable solids.”, said Mr McEnteggart, “however while the proposal is a huge change we have built in several safeguards for our farmers as specialist year round quality milk suppliers. They include a working band which takes some of the volatility out of the system, a gradual transition option which gives farmers to April 2014 to be paid fully on solids, a contract alignment mechanism that encourages sales and a differential which makes a firm effort to cover the costs of 365 day milk production together these are put in place to ensure equity for our producer members.” “We need to work together to ensure a guaranteed supply of fresh milk to the consumer at all times , while recognising the importance of the primary producer, the local processor and all the jobs involved therein to our indigenous economy” concluded Mr McEnteggart. All Fresh Producer Members can access a copy or gain clarity on any detail on the proposed deal by contacting their local group representative the Group Secretary |
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Value Share 2009
MAT (Neilsen January 2010)
Share of Retail Milk
Avonmore is continuing its reputation as one of Ireland’s Strongest Retail Brands holding on to its position as number 2 brand in value to Coca Cola, interestingly if they were both on the same tax rate Avonmore would take the top spot. Premier is #27. “Our price must reflect the regard that the consumer holds our product” said FMP Chairman Eamonn McEnteggart. “It is obvious that the hard work on farm we put in has rewards at retail level.’’ Impact of Imports
578 Million Litres are consumed in the Republic of Ireland each year
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| - Retail 79% (455ML) |
| - Doorstep 6% (35ML) Glanbia have 80% of this |
| - Catering 15% (87ML) |
IMPORTS
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| - Bulk 63 ML, Packaged 59ML |
| - 21% in 2008 of Milk consumed in ROI was imported |
| - 0% in 1996 |
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| The Fresh Milk Producers are pleased to announce a donation €10,000 to Bothár from their Pennies Fund. This donation is to aid in the transport of their recent shipment of 143 heifers donated by the farmers of Ireland to families in need in Rwanda. Speaking at the collection point in Roscrea Mart Fresh Milk Producers Chairman Eamonn McEnteggart said “We have had an exceptional year for milk production, with reasonable good weather, a fair milk price and great milk yields. This shipment of 143 heifers shows the exceptional generosity of the Irish farmers, and we are proud to support Bothár in donating €10,000 towards flying these heifers to Rwanda to complete their mission to improve the lives of many who are much worse off than ourselves. We hope these heifers give the farmers who receive them as much joy, sustenance and financial reward as they gave their Irish families who donated them.” Pictured are Eamonn McEnteggart presenting the cheque to Dave Moloney Chief Executive Bothár before the heifers depart for Kigali, Rwanda. Also pictured is David Leydon Circulation Manager of the Irish Farmers Journal who facilitated the campaign. | |  |
| View the New Glanbia Liquid Payment Structure here Discussions and Negotiations with Glanbia on the new payment structure for your Liquid Milk over the past 20 months came to a conclusion on the 12th of July last. We then presented the structure to our Central Executive and then to our members for ratification at all Producer Groups. The meetings were well attended and I hope you had the opportunity to attend. The delegates then returned their votes to the recent Exceptional Central Executive on the 3rd of August, ratifying the deal by an overall majority. The deal as negotiated has been accepted, and all issues raised will be acted upon. Please see the Document Here. It was also agreed at the Exceptional Central Executive that the annualised differential of 46cpl will be distributed evenly across 6 winter months (October to March) at 7.66¯cpl. As part of the package you have to make the choice between remaining with a flat element to your price or moving your Liquid Contract to a price based on constituents plus a set differential, the full details on your options are here FMP Liquid Options. Should you wish to move to the Solids based price you must notify Glanbia Farm Advisor before 1st of October 2011 for a constituent payment in 2012. If you have any questions please contact any member of the Negotiation Team listed here | | |
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New Liquid Milk Payment Structure for registered Liquid Farmers supplying Glanbia |
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DifferentialFrom 1st January 2012 those who opt for constituents will achieve a total differential of 46cpl; 3.833cpl annualised. Those who choose to remain with a portion Flat will receive the remaining prrtion paid in this manner. (See Payment structure below) Working BandWhen Manufacturing base is between 27-32cpl our base will remain the same. However moves outside this band we will only receive half the fall or rise. This will be reviewed at the end of 2012 and 2013. Example: RoundingThe price will be rounded up to the nearest point one of a cent (€0.001) for 11 months and any overpayment will be recovered in period 12 of each fiscal year i.e. cost neutral Relationship between Glanbia and FMPA Review will be held once per year. Agenda for Meeting: 1 Business performance review 2 Farm business performance review 3 Review of the Contract 4 Milk price competitiveness review 5 Seasonal Payments options review 6 Review utilisation and payment of any volume reductions 7 Review of Working Band 8 Milk Quality Review 9 AOB Contracts
Contracts will be linked to sales of milk. Any reductions will be taken one year after on a calendar year basis. For example, sales lost in 2010 will be applied as a reduction from 1st January 2012. (Prior year -1) Any reduction in Contracts will be placed into a Winter Scheme. • In year one the cut will be paid at 66% of the Winter Scheme price. • In year two the cut will be paid at 50% of the Scheme, thereafter it will be reviewed (see point 6 above). Constituents and Payment StructureProducers will have the option to move to constituents.They will notify Glanbia by 1st September and move from the 1st of the following January. Should a producer move they cannot go back . Option 1 Payment for those who choose not to moveProducers who feel they need time to transfer to a solids based system his Milk is can be paid on a Hybrid model, this will transfer a portion of his milk slowly over to a constituents System as outlined below. Their flat rate is based at 5.63cpl (at current rate will be 37cpl) Option 2 Payment on Constituents It is agreed that the differential annualised will be 46cpl. We have the option to request this pay-out as we see fit below are some options being considered. Everyone may get paid in this manner post April 2014 |
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Survey of Milk Constituents from Fresh Milk Producers Suppliers |
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Dear Member, Thankyou to all those of you who have completed the Survey of constituents. The results have proven very useful to us in our recent round of discussions with Glanbia. We have recently presented these results to the Groups around the country, which you attended. Should you want detailed information of the results contact the Secretary John Graham. 
If you have not done so already Click here to complete the SCC, Butterfat and Protein Survey Thank you |
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The Glanbia Liquid Milk price is currently paid to farmers with quota on a 7 month winter basis. The price we achieve through negotiation being a flat rate unreflective of constituents. This price has historically been negotiated twice a year, however, in recent times, this is being negotiated on an almost monthly basis for milk that has been collected. While this has proven to yield one of the best prices in the country, this is not acceptable in the long term. Continuous pressure applied by FMP members around the region has also proved important in highlighting to Glanbia the price we need to survive. It is essential that people remember that the liquid milk system is far more costly than the spring-based system, and farmers only supply milk that is under contract to either liquid production or winter milk bonus. Click here for the proposed new liquid milk payment system for suppliers to Glanbia. |
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| | | IFA National Dairy Chairman Kevin Kiersey today said farmers should be aware that, while dairy markets returns have come down from their 2011 peak, the outlook for 2012 remains reasonably good. |
| | | IFA National Dairy Committee Chairman Kevin Kiersey today (Tues) said that, since last April, the euro had weakened by over 11% against the US $, and by 6% against Sterling. He said this was equivalent to a return boost of 4c/l on SMP and butter exported onto the world market, and just over 2c/l for exporters of cheddar cheese to the UK. |
| | | IFA National Dairy Committee Chairman Kevin Kiersey said that, since last April, the Euro had weakened by over 11% against the US $, and by 6% against Sterling. He said all other things being equal, this was equivalent to a return boost of 4c/l on SMP and butter exported onto the world market, and just over 2c/l for exporters of cheddar cheese to the UK. |
| | | IFA National Dairy Committee Chairman Kevin Kiersey today (Tues) said that although weakness had crept into EU and international dairy markets in recent months, co-ops had improved their margins significantly in 2010 and 2011, and most could afford to hold milk prices at least through the Spring. |
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Price for 2011
Jan - Dec Annualied Price 35.24cpl
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The price for 2011 has been set on a flat rate giving us an annualised price, should Manufacturing not move, of a minimum 35.24cpl
All prices are paid on a flat basis.
June – August are paid at 32cpl, should the Manufacturing price move this will follow in line. *The bonus of 0.95cpl to December will be reflected in these months.
September 36, October – December 38cpl. These prices are fixed.
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June
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32.95*
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Flat moving in line with Manufacturing
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July
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32.95
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August
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32.95
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September
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36
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Flat Fixed
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October
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38
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November
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38
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December
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38
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Chairman
At the 2009 AGM of the Fresh Milk Producers Eamonn McEntaggart, a Liquid Milk Farmer from Co. Louth, was Elected Chairman for a 2 year term.
Eamonn is the 4th Chair from County Louth and the first from his local Group Dealgan.
Eamonn succedes the position from Donal Murphy.
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Joint Quality Chairman
Derek Tierney, Doneda Co. Kildare, is the chairman of the Joint Quality Committee. Derek will be liasing with Glanbia to ensure early detection and prompt results to ensure that Glanbia's Liquid suppliers continue to provide a world class product in an equitable manner.
Derek has served 4 years on the negotiation team. During his term he has proven to be a key member in delivering for farmers.
Any Quality queries do not hesisitate to contact Derek or his secretary John Graham. FMP Contacts
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Vice Chair of the Negotiation Team
Stephen Arhur from Ballinaclash Co. Wicklow is the Vice Chairman of the FMP and Negotiation Team.
Stephen set up his liquid milk enterprise from scratch on a green field site in 1996. Along with the rest of the Negotiation Team he will be working tirelessly to ensure all Liquid suppliers recieve a fair price for their quality product.
Stephen has been the Joint Quality Chairman from 2006 to10, where he set up a system of reporting to ensure a direct line to our milk purchaser for expedient and fair results.
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Larry Hannon elected to the Negotiation Team
Larry Hannon from from Ballytore Co. Kildare has been elected to the Fresh Milk Producers Negotion Team.
Larry and his father Jim before him have always been active in FMP at all levels. A Keen Rugby player and enthusiast Larry milks 120 cows on a 60% Liquid contract. He milks a high EBI herd with an emphasis on Quality, keeping his SCC consistantly below 150.
Larry's Wife Karen and 3 daughters Lucy and twins Amy and Sally are fully behind Larry in his new position which will take long hours and dedication to ensure specialist Liquid Producers are treated with respect.
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Annualised price
32.33cpl ExVat
Price for 2010
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Milk Price for 2010
The milk price has now been agreed between the FMP Negotiation team and Glanbia. The price to be paid to farmers for quality milk is 35, 35, 35 and 35 cpl EX VAT for September, October, November and December 2010.
The price agreed gives us an annualised Price of 32.33 cpl, this is 1.91 cpl ahead of 2009, while this ia an agreed improvement and worth
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PROPOSED NEW PAYMENT STRUCTURE FOR LIQUID MILK |
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| Fresh Milk Producers(FMP) Chairman Eamonn McEnteggart has welcomed the strong turnout to the Local Producer Group meetings. “We have been negotiating this deal for 18 months, and it is now at a point where we are putting it to our members. The changes proposed are far reaching and radical” said the Chairman “The group reaction is positive to the new payment structure for Liquid Milk. However to ratify the negotiated deal officially a Central Executive will be held in August.” Traditionally Liquid Milk in the Glanbia group has been supplied and paid for on a flat rate system going back to the groups’ inception in 1937. “This move to an A+B-C payment structure is a momentous leap and a huge change for liquid suppliers to Glanbia. We have traditionally focused on quality and volume, however under the new structure constituents will have considerable influence on the price the farmer receives for his milk,” said Mr McEnteggart. “Under the new proposals our breeding and feeding systems will have to evolve to take into account the constituents in one’s milk supply. This will take considerable time and effort on the ground to attain.” “All processors because of consumer demand are now more focused on Butterfat and Protein than ever before, and we must recognise that we are part of a Dairy industry where supply will inevitably increase and as a result a larger portion of our milk will end up in a commodity market which is structured totally around the saleable solids.”, said Mr McEnteggart, “however while the proposal is a huge change we have built in several safeguards for our farmers as specialist year round quality milk suppliers. They include a working band which takes some of the volatility out of the system, a gradual transition option which gives farmers to April 2014 to be paid fully on solids, a contract alignment mechanism that encourages sales and a differential which makes a firm effort to cover the costs of 365 day milk production together these are put in place to ensure equity for our producer members.” “We need to work together to ensure a guaranteed supply of fresh milk to the consumer at all times , while recognising the importance of the primary producer, the local processor and all the jobs involved therein to our indigenous economy” concluded Mr McEnteggart. All Fresh Producer Members can access a copy or gain clarity on any detail on the proposed deal by contacting their local group representative the Group Secretary or on the web at www.ifa.ie/fmp. | | |
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FRESH MILK PRODUCERS FACING INTO AN EXPENSIVE WINTER |
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| Speaking after a meeting of the Fresh Milk Producers Central Executive, (FMP) chairman Eamonn McEnteggart said that their members will be under severe financial pressure should winter milk prices not reflect the extra cost of production associated with the supply of liquid milk this winter. “Feed, electricity and other costs associated with producing quality liquid milk are rapidly rising. With a basic ration rising by 25% alone adding 1.5c per litre on our cost of production” said Mr McEnteggart “At a time when consumers are becoming increasingly aware of the quality of the food they consume and milk is a very natural, healthy, value for money food source, it is essential that the farmers who provide the milk for Irelands No.1 Milk Brand Avonmore, continue to supply high quality fresh milk for 365 days per year and to do this they need a fair and realistic price.” “We are pleased to see Glanbia posting strong profits for the first half of 2010 as it is essential for all that the company is in a strong financial position. However liquid milk farmers’ income is totally dependent on the price they receive for their milk and not on share price or company profits. Therefore farmers need a fair and equitable return on their product in order for them to survive financially and continue to provide Glanbia with a guaranteed supply of quality milk to maintain further profits. Everybody in the business needs to take the primary producer into account, the consumer, the retailer, the processor. Food is precious, its production should not be taken for granted.” | | |
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IRELAND’S LARGEST LIQUID MILK SUPPLIERS CALL FOR CHANGE IN NITRATES REVIEW |
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| Speaking at a recent Central Executive Meeting of the Fresh Milk Producers, FMP Chairman Eamonn McEnteggart has called on Minister for Agriculture Brendan Smith to ensure the current review of the Nitrates Regulations maximises the potential of the agri-food sector by eliminating all unnecessary and excessive costs. Mr McEnteggart said, “Fresh Milk Producers are the largest producers of liquid Milk in the country. We produce milk 365 days-a-year for the Avonmore, Premier and Snowcream brands and also other Glanbia products. As a sector we have the potential to create much needed employment. The Government’s own agri-strategy document Food Harvest 2020 estimates that the dairy sector can grow by at least 50% over the next ten years.” “The objectives of Food Harvest 2020 can only be achieved if excessive cost burdens are eliminated. The Nitrates Derogation must be maintained to allow for expansion, while limits such as calendar farming and phosphorous application must be re-examined to remove any unnecessary costs.” “Despite the current economic climate farmers are looking to the future, global demand for food is increasing, and we must be allowed to meet these demands to survive. Ireland is the Food Island, we produce food more sustainably and better than anywhere in the world. The nitrates review must lift the unnecessary blockages to achieving the full potential of the sector and create much needed jobs.” Concluded Mr McEnteggart. | | |
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Glanbia Coop Purchase of the Plc's Irish Interests |
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| Fresh Milk Producers Chairman, Mr Eamonn McEnteggart, welcomed the principle and the idea of proposed Coop buyout of Glanbia plc's Irish operation. He said "a significant number of milk suppliers had voiced their unease and dissatisfaction with the present structure and how it is working for for farmers quite some time. The board should be congratulated on bringing a proposal to the shareholders, the initiative and the workload should not go unnoticed". "It is extremely important that every shareholder should exercise theie right to vote as it is the principle on which the Co-op structure works, one person one vote, the shareholders have the control and indeed make the final decision on this issue. It will give the Co-op idea a great boost and strengthen the farmers hand if the turnout on this occasion is above 60% of voters. He urged all members of the farming community who have a vote to make the time to travel to Kildlaton on the 10th of May as it will show management and staff of Glanbia, the broader agricultural community and all related parties the importance we as farmers place on our business". He said there were a number of issues that needed clarity and as the information is now only coming into the public domain it is a little early to make a decision. "It is important that the Co-op is fit for purpose going forward and for farmers to be convinced of that". All related matters need to be discussed at length. Issues like the value of the business, the share price, assets and debts of the Co-op, total pension liabilities, operating profit projections, surplus property, research and development, future investment plans and the strategy for the Co-op in the next few years are all vitally important to this proposal. People need to get all the information possible so an informed and correct decision can be made. Mr McEnteggart concluded "Farmers now have the opportunity to influence the outcome and take control of their future and they must use it". There will be specific meetings for Fresh Milk Producer Members before the 10th of May, see www.ifa.ie/fmp and your local representative fore more details. | | |
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April 1st of 2009 saw the first batch of farmers paid on the constituents based (A + B + C) system for milk supplied surplus to Liquid contract. As you are aware, farmers can opt to move to this system in January 2010, and it is proposed that all farmers will be paid this way commencing January 2011. It is essential that you keep an eye on the price paid in your cheque and ensure you supply milk in a pattern where our milk constituents are at their highest as low protein and butterfat will be severely penalised. We will be having discussions at our local producer group meetings over this coming autumn/winter season to see how we can maximise our milk cheque. Please Contact your Advisor in February 2010 should you wish to transfer from the flat rate to the constituents based system. |
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As of January the 1st 2012 all farmers will have some element of their liquid contract paid on Solids, the Hybrid system on 20% and those who have chosen to move will have 100% subject to Butterfat and Protein. With this in mind it is more important than ever to attend this years liquid Conference, both to have the information to best direct your business. See you on Wednesday 26th of October in the Ardboyne Hotel Navan. 
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Eamonn McEnteggart, Chairman FMP
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The strength of FMP as an organisation depends on the support and participation of all its members. This is particularly true in the current challenging environment. Unfortunately, liquid milk has not been immune to the downturn in the economy. The most significant challenges are the general fall in market returns for dairy products and the continuing challenge from Northern Ireland processors.
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Click here to access the list of Fresh Milk Producers Committee Members. |
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Negotiation Team
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Producer Group
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Position
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| Eamonn McEnteggart |
Louth |
Chairman |
| Stephen Arthur |
East Wicklow |
ViceChair |
| Denis Fagan |
Meath |
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| Larry Hannon |
Mid- Leinster |
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| John Graham |
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Secretary |
The Negotiation Team deals with all issues relating to Price and the manner in which your Liquid milk is purchased. Contact Details here |
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