Glanbia Milk has developed a second fixed-price milk scheme for its suppliers in NI.

Under the terms of the scheme, Glanbia will pay suppliers a minimum base price of 28p/litre over an 18-month period which will run from 1 June 2018 to 30 November 2019.

Normal payments for milk solids apply on top of this base. A market adjustment clause has also been included should milk markets strengthen over the period.

In such a scenario, Glanbia will increase the fixed base price by 0.5p/l for every 1p/l increase in their annual average milk price over 28p/l. There is no market adjustment clause should standard milk prices fall below 28p/l.

To be eligible for the scheme, Glanbia suppliers in NI must commit a minimum of 10,000 litres and have a valid milk supply agreement in place.

There is no upper cap on the volume a supplier can commit under the fixed-price scheme.

However, in the event that there is an oversupply of milk committed, then the volume of milk that is eligible for the fixed price will be awarded on a pro-rata basis.

Suppliers have until Friday 15 June to apply for the scheme.

The co-op’s first scheme also guaranteed suppliers a minimum of milk price of 28p/l, and commenced on 1 January 2018, running for a three-year period.

GDT

Meanwhile, dairy commodities saw some downward price moves at this week’s GDT. The overall index fell by 1.3% to US $3,487/t. Butter prices fell by 17.7% with cheddar prices down 3.6%. Skim milk powder rose by 0.3% with whole milk powder down 1.1%.