Dairygold launches new Fixed Milk Price Scheme

In a move that has been in the offing for several months, Dairygold has launched a new Fixed Milk Price Scheme.

The Scheme, approved by the Board at its monthly meeting yesterday, sets a price of 30.20c/L (including VAT, full balanced scorecard and SDAS bonus) at reference milk constituents of 3.6% butterfat and 3.3% protein.

Under the scheme, a milk supplier delivering the average Dairygold milk constituents and achieving the above bonuses will receive a price in excess of 33.5c/L.

This is a voluntary scheme which will run for 18 months from March 2016 to August 2017 inclusive.

The scheme will see suppliers have the option to fix a volume up to a maximum equal to 15% of their 2015 milk supply.

Interested milk suppliers will be asked to apply before March 4, expressing their preference for 5%, 10% or 15% of their 2015 supply.

Key Details
  • Price of 30.20c/L (including VAT
  • Milk constituents of 3.6% butterfat and 3.3% protein
  • Scheme will run for 18 months from March 2016 to August 2017
  • Maximum volume 15%

Speaking about the scheme Tim Healy, Head of Dairy Operations said Dairygold is pleased to offer this scheme which has been developed in conjunction with key partners and he said it represents a methodology in ‘cushioning’ volatility for Dairygold suppliers.

Meanwhile, Dairygold Chairman James Lynch said the Fixed Milk Price Scheme is the latest in a series of volatility management initiatives introduced by Dairygold to assist our milk suppliers during the current downturn in international markets. and offers suppliers an opportunity to protect their margin on a proportion of their milk.”

“It offers suppliers an opportunity to protect their margin on a proportion of their milk,” he said.

Full details of the Scheme will be made available to all milk suppliers in the coming days.

In November, Glanbia Ingredients Ireland (GII) announced details of its new Fixed Milk and Feed Price Scheme with a base of 30.25c/L (including VAT) at reference milk constituents of 3.6% butterfat and 3.3% protein.