It has been confirmed that a new Fixed Milk Price Scheme has been launched by Dairygold, to run over a three-year period.
The scheme is set to run from March 1, 2018, to November 30, 2020.
The scheme provides milk suppliers with a voluntary option to help manage milk price volatility and deliver price certainty on a fixed volume of their milk deliveries, according to Dairygold.
Under this new scheme, a milk supplier delivering the 2017 average Dairygold milk constituents (fat and protein) will receive the equivalent to an average price of 34.77c/L, the processor claimed.
This represents Dairygold’s third Fixed Milk Price Scheme; it is voluntary and open to all contracted milk supplying society members.
Milk suppliers interested in the scheme are asked to apply before Friday, February 16. Those applying are advised to express their preference for 5% or 10% of their 2017 supply, a fixed volume which will apply for each calendar year to November 2020.
Speaking about the scheme, Dairygold chairman John O’Gorman said: “We are pleased to offer our members the voluntary option of a new Fixed Milk Price Scheme, particularly in the context of recent months in which we have seen significant dairy market volatility.
“The scheme will allow our suppliers to fix the returns they get from a portion of their produce and to protect their margin.”