Northern Ireland’s largest dairy co-op, Dale Farm, has opened its first fixed price milk scheme.

The terms of the scheme were outlined to members at a meeting in Cookstown on Monday night. Set at a price of 27p/l, the scheme is for three years, starting on 1 January 2018. Members have until 6 October to decide if they wish to take up the offer, with all contracts to be finalised by the end of that month.

The amount of milk that can avail of the fixed price is calculated on the basis of the last 12 months of production to August 2017. The trough month is taken, and a producer can then lock in anywhere between 10% and 60% of production in that month.

For example, if a member’s lowest monthly supply over the last 12 months was 60,000l, and they decided to lock in at 30%, this works out at 18,000l. So for the next three years, 18,000l of milk each month would be paid at a fixed price of 27p/l before quality adjustments.

However, the scheme does not suit tight spring- or autumn-calving herds, who probably have a month when there is virtually no milk produced on the farm. They are effectively excluded.

We will have full details of the scheme in the NI edition of this weeks’ Irish Farmers Journal.

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Listen: 31c/l fixed milk price schemes from Glanbia and Kerry