Notes to the financial statements

for the year ended 3 January 2009

37.Derivative financial instruments

	2008 Assets €'000	2008 Liabilities €'000	2007 Assets €'000	2007 Liabilities €'000
Interest rate swaps - cash flow hedges	-	(14,957)	82	(528)
Interest rate swaps - fair value hedges	4,156	(1,657)	1,172	(4,738)
Foreign exchange contracts - cash flow hedges	2,400	(2,459)	2,980	(108)
Commodity futures - cash flow hedges	236	(650)	9	(39)
Commodity futures - fair value hedges	6,340	(6,340)	1,510	(1,510)
Total	13,132	(26,063)	5,753	(6,923)
Less non-current portion
Interest rate swaps - cash flow hedges	-	(8,388)	43	(259)
Interest rate swaps - fair value hedges	2,501	(607)	720	(3,477)
Commodity futures - fair value hedges	253	(253)	-	-
Non-current portion	2,754	(9,248)	763	(3,736)
Current portion	10,378	(16,815)	4,990	(3,187)

Interest rate swaps
The notional principal amounts of the outstanding interest rate swap contracts, qualifying as cash flow hedges at 3 January 2009 were €317.6 million (2007: €96.4 million).

The notional principal amounts of the outstanding interest rate swap contracts, qualifying as fair value hedges at 3 January 2009 were €265.1 million (2007: €265.1 million).

At 3 January 2009, the fixed interest rates vary from 3.665% to 4.94% (2007: 3.79% to 4.3722%) and the main floating rates are set in advance by reference to inter-bank interest rates (5.151% EURIBOR, 2.3225% $LIBOR).

Gains and losses recognised in the fair value reserve in equity on interest rate swap contracts at 3 January 2009 will be continuously released to the income statement until repayment of the bank borrowings.

Foreign exchange contracts
The notional principal amounts of the outstanding foreign exchange contracts at 3 January 2009 are €78.3 million (2007: €71.8 million).

Gains and losses recognised in the fair value reserve in equity on foreign exchange contracts at 3 January 2009 will be released to the income statement at various dates between one day and one year from the balance sheet date.

Commodity futures
The notional principal amounts of the outstanding commodity (milk, gas, oil and propane) futures, qualifying as cash flow hedges and fair value hedges at 3 January 2009 were €5.6 million and €28.8 million (2007: €1.2 million and €7.6 million) respectively. Gains and losses recognised in the fair value reserve on these futures as at 3 January 2009 will be released to the income statement at various dates within one year from the balance sheet date.

Financial guarantee contracts
In accordance with Group accounting policy, management has reviewed the fair values associated with financial guarantee contracts, as defined within IAS 39 (Financial Instruments: Recognition and Measurement) issued in the name of Glanbia plc (the Company) and has determined that their value is not significant, therefore no adjustment has been made to the Glanbia plc company balance sheet to reflect fair value of the financial guarantee contracts issued in its name.