Glanbia Ingredients Ireland (GII) said this Friday that it was launching a new fixed milk price scheme with a base price of 27.55c/litre excluding VAT (29c/l including VAT) at 3.6% fat and 3.3% protein.

This is the seventh phase of Glanbia’s fixed price scheme, running from 1 April 2016 to the end of 2018.

The price on offer is down 1.18c/l excluding VAT compared with that in phase 6, which opened last November.

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GII has said that phase six was “heavily over-subscribed”, with around 2,000 of its 4,800 suppliers requesting entry. The processor declined to provide detailed numbers on fixed-price allocations to farmers so far.

New entrants

In keeping with existing policy, suppliers already in the scheme will be prioritised under phase seven. However, an allocation will also be made available for 2016 new entrants and the volume allocated to each participant will automatically double after 15 months, Glanbia said.

The scheme will pay a fixed price of 29c/l inclusive of any support payment from the co-op for the first 15 months. Then, from July 2017, any co-op supports will be added to the base price.

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