Top milk payer makes SDAS adjustments
One of the top payers for milk has told suppliers all their will now effectively qualify for a Sustainable Dairy Assurance Scheme (SDAS) bonus.
Drinagh Co-op has told suppliers this is effectively being achieved by reducing the processing charge to 3.55c per litre, and ending the existing SDAS bonus of 0.15c.
Up to now, the processing charge was 3.7c, being the C part of the A + B minus C milk pricing system. In future the processing charge will be 3.55c, and there will be no SDAS bonus.
All milk will thus effectively receive the SDAS bonus through a lower processing charge. However, any supplier that has not completed their first SDAS audit is being penalised 5c per litre starting from July 1, 2017, until they achieve certification.
Any supplier ready to have their audit or who requires any assistance has been asked to contact the co-op.
The changes have been announced along with a 1c per litre milk price increase for July, bringing the price to 36.25 cpl (164.79c/gallon) at 3.6% butterfat and 3.3% protein, including summer SCC bonus of 0.5 cpl, and VAT at 5.4%.
The average price paid for July is 38.7c/litre, for the co-op’s average butterfat of 3.94% and protein of 3.43%, including SCC and VAT.
