Dairygold unveils new fixed milk price scheme

The board of Dairygold has approved a new fixed milk price scheme – FMPS 4.

According to the co-op, the new offering is designed to offer milk suppliers a voluntary option to help manage milk price volatility and deliver price certainty on a fixed volume of their milk supply.

The scheme follows the success of the society’s three previous fixed milk price schemes in 2016, 2017 and 2018, according to the co-op.

The dairy processor is writing to all milk suppliers this week offering a fixed base price of 31.5c/L, including VAT, full balanced scorecard, and sustainability bonuses of 0.65c/L, set at reference milk constituents of 3.3% protein and 3.6% butterfat.

This is equivalent of 35.05c/L at the society’s 2018 average protein and butterfat results.

The scheme will operate over a three-year period from March 1, 2019, to November 30, 2021. It is available to all milk suppliers and participation is voluntary.

Milk suppliers can choose to fix 5% or 10% of their overall milk volumes based on their 2018 milk supply to Dairygold.

The fixed volume selected will apply for each calendar year 2019, 2020, and 2021.

Milk suppliers who wish to avail of the new fixed milk price scheme need to return a signed application form to Dairygold before Wednesday, February 20, 2019.