Dairy farmers should be wary of new milk price system

AS the dairy industry edges closer to an alternative basis for milk payment with the introduction of the A+B-C formula, there are fundamental issues which dairy farmers must consider.

While it will take time to achieve the suggested savings of €50 per cow (by reducing milk volume while maintaining milk solids), the potential can no longer be ignored. There are two principles of the proposed change to A+B-C pricing about which farmers are very concerned.

It would be imprudent for them to accept it without first an agreed formula for determining the ‘C’ value and, secondly, confidence in the measurement of milk solids.