A three-year Fixed Milk Price Scheme has been launched by Dairygold which will run from March 1st, 2018 to November 30th, 2020.
The scheme provides milk suppliers with a voluntary option to help manage milk price volatility and deliver price certainty on a fixed volume of their milk deliveries.
It offers a fixed price of 31.25 cent per litre, including VAT, set at reference milk constituents of 3.30% Protein and 3.60% Butterfat, including bonuses.
Under this new scheme a milk supplier delivering the 2017 average Dairygold milk constituents (Fat and Protein) will receive equivalent to an average price of 34.77 cpl.
This is Dairygold’s third Fixed Milk Price Scheme. It is voluntary and open to all contracted milk supplying society members.
Dairygold is asking milk suppliers who are interested in applying for the scheme to do so before Friday, February 16th. As part of the apllication milk suppliers are required to express their preference for 5% or 10% of their 2017 supply, a fixed volume which will apply for each calendar year to November 2020.
Speaking about the scheme, Dairygold Chairman John O’Gorman said:
“We are pleased to offer our Members the voluntary option of a new Fixed Milk Price Scheme particularly in the context of recent months in which we have seen significant Dairy market volatility. The scheme will allow our suppliers to fix the returns they get from a portion of their produce and to protect their margin.”