Arrabawn Co-op has invited its members to sign a three-year fixed price milk contract, at 30.6 cent per litre for 10% of their milk supply through to 2019.
This is Arrabawn’s first ever fixed price milk contract. The offer covers 10% of the farmer’s milk, based on their 2016 supply to the co-op.
The 30.6cpl (at 3.60% fat and 3.30% protein) is inclusive of Vat, across the eight-month calendar from March to October, for 2017, 2018 and 2019.
Arrabawn CEO, Conor Ryan, said: “This is an opportunity for suppliers to hedge a portion of their supplies in what has the potential to be a volatile post-Brexit period, with some turbulence expected in the short-term as arrangements bed down after Britain leaves the EU.
“On top of the positive milk price we are paying our suppliers, this signals the continued good health of the co-op following a sustained period of significant capital investment, which has consolidated the co-op and enabled us to support our suppliers in a range of initiatives, including this new fixed price contract offer.”
He said the contract will give suppliers certainty on a 10% share of their milk during three uncertain years.
Any surplus arising from members not taking the offer will also become available to interested suppliers and offered to them in proportion to their 2016 volumes.
Meanwhile, Dairygold has also unveiled a new fixed price milk supply scheme for its members. The contract will run over a three-year period from March 1, 2017, to November 30, 2019, inclusive.
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