Unveiling details of its new fixed milk price scheme this week, Glanbia has introduced a new tool to allow the fixed milk price move to reflect higher feed price.

In the new scheme, if feed prices increase so too will the fixed milk price. The base milk price for the new three-year scheme is 39.8c/l excluding VAT for 2022 and 37.9c/l excluding VAT for 2023 and 2024.

In a new development in response for calls to align farm input costs to output prices Glanbia Ireland has established a feed price adjuster.

International

This tracks international feed price indices such as the Matif wheat, the Chicago Board of Trade (CBOT) corn and CBOT soya meal.

For every €50/t increase in feed prices, the milk price paid out under this scheme will rise by 0.5c/l (including VAT) or part thereof on an annualised basis.

For example, if the actual price of these commodities increased by €25/t, then the milk price for the period would be increased by 0.25c/l (including VAT).

The feed adjuster applies from 1 July 2022 to 30 December 2023.