Dairygold has introduced a new Fixed Milk Price Scheme, which will run over a three year period from March 1, 2017 to November 30, 2019 inclusive.
The scheme offers a fixed price of 30.75c/L, including VAT, set at reference milk constituents of 3.30% protein and 3.60% butterfat, including Full Balanced Scorecard and Sustainable Dairy Assurance Scheme (SDAS) bonuses.
Under the scheme a milk supplier delivering the 2016 average Dairygold milk constituents will receive a price of 34.05c/L.
This is the second Fixed Milk Price scheme offered by the Dairygold and like the previous one, it is voluntary and open to all milk supplying Society Members who have completed Milk Volume Forecasting and are participating in the Sustainable Dairy Assurance Scheme.
The fixed volume selected will apply for each calendar year 2017, 2018, and 2019.
Speaking about the scheme, Dairygold Chairman James Lynch said that Dairygold is pleased to offer this scheme which is voluntary but gives its members the opportunity to de-risk a portion of their milk supply for the next three years.
“I believe it is important for every member to consider the option from their own perspective to hedge against future market volatility.”
Dairygold launched its first Fixed Milk Price Scheme in January of last year which set 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 would receive a price in excess of 33.5c/L.
The scheme has a lifetime of 18 months and runs until August 2017.
The scheme allowed suppliers to have the option to fix a volume up to a maximum equal to 15% of their 2015 milk supply.