Dairygold issues details of new fixed milk price scheme

Dairygold milk suppliers will receive details of a new voluntary fixed milk price scheme in the coming days.

The dairy co-op’s board has set a price of 30.2 cent per litre for the scheme, to help protect suppliers from market volatility.

The 30.2cpl fixed price includes Vat, full balanced scorecard and SDAS bonus, set at reference milk constituents of 3.6% butterfat and 3.3% protein.

A milk supplier delivering the average Dairygold milk constituents and achieving the above bonuses will receive a price in excess of 33.5 cpl.

Dairygold chairman, James Lynch, said: “This scheme is the latest in a series of volatility management initiatives introduced by Dairygold to assist our milk suppliers during the current downturn in international markets and offers suppliers an opportunity to protect their margin on a proportion of their milk.”

The scheme will run for 18 months from March 2016 to August 2017 inclusive. Under the scheme suppliers will have the option to fix a volume up to a maximum equal to 15% of their 2015 milk supply.

Interested milk suppliers will be asked to apply before March 4, expressing their preference for 5%, 10% or 15% of their 2015 supply.

Tim Healy, Dairygold head of dairy operations, said: “Dairygold is pleased to offer this scheme which has been developed in conjunction with key partners and represents a methodology in cushioning volatility for our suppliers.”