North-west based agribusiness Aurivo has announced details of a new fixed milk price scheme for its suppliers both in the Republic of Ireland and Northern Ireland.
Designed to assist suppliers in the management of milk price volatility, the scheme guarantees a secure price on a fixed proportion of supply over a three-year period.
In a programme described by the company as “one of Aurivo’s strongest schemes to date”, suppliers who choose to participate will be guaranteed 33.5c/L including VAT on up to 10% of their monthly supply for 36 months, starting in January 2018.
Meanwhile, participants in Northern Ireland will be paid 29p/L – VAT inclusive – on up to 10% of their monthly supply for the same time-frame.
The scheme is open to all milk suppliers and participation is voluntary; however, to be eligible, applicants must be certified in the Bord Bia Sustainable Dairy Assurance Scheme.
This rivals the five-year fixed price schemes of both Glanbia and animal feed company Grennans, which offer fixed base prices of 31c/L and 31.5c/L respectively.
Speaking about the announcement, Aurivo CEO Aaron Forde said: “We’re proud of this price offering, as it’s our best one to date and it will make a positive impact on suppliers who are faced with uncertainty over milk price volatility.
In what is a very challenging time, Aurivo is committed to supporting milk suppliers so I would encourage suppliers to give serious consideration to participating in this scheme.
Pat Duffy, chairman of Aurivo also spoke, noting: “This is a very positive development and we’re confident there will be strong uptake among our suppliers, who work tirelessly to consistently deliver quality products.
“This scheme will deliver peace of mind to them in relation to a portion of their supply over the next three years, as they can rest assured that – despite other external factors that might arise – they’ll receive a secured price for a fixed amount of their supply.
This scheme demonstrates our commitment to suppliers in Northern Ireland despite ongoing uncertainty around Brexit.
Aurivo exports dairy ingredients to over 50 countries in markets such as Afghanistan, Iraq, Nigeria, Congo and Costa Rica.
It also has dairy and sports nutrition brands, an animal nutrition business and a network of 32 agri and lifestyle retail stores as well as four livestock marts.