Dale Farm offers NI dairy farmers 3-year fixed-price contract

Dairy co-operative Dale Farm has launched a new fixed-price contract option to its milk producers in Northern Ireland.

Due to commence on January 1, 2021, the voluntary three-year fixed-price contract will see farms which sign up supply an agreed amount of milk per month at a base price of 26p/L (April to September) and 29p/L (October to March).

This price is for base quality milk of 3.85% butterfat and 3.18% protein.

Milk supplied on the contract will be eligible for quality payments for somatic cell count (SCC), Bactocount, protein and butterfat in line with the standard quality payments of Dale Farm milk quality payments.

Stephen Cameron, group commercial director with Dale Farm, said: “We are pleased to offer this fixed milk price contract option to dairy farmers, giving them a choice on how to manage their business.

“A contract such as this can offer protection from volatile dairy markets, offering a guaranteed price for the next three years.

“Opting into the contract is, of course, a decision that all farmers must make based on their own circumstances.”

Producers can offer either 10%, 15%, 20%, 25% or 30% of their supply for each of the 12 months from October 2019 to September 2020 for inclusion as the monthly volume in the fixed-price contract.

Applications for the contract must be returned to Dale Farm by 5:00pm on Friday, November 20, 2020.