LacPatrick suppliers in Northern Ireland (NI) will now receive a winter bonus for milk supplied in November and December, the Irish Farmers Journal understands.
The board of LacPatrick Dairies has agreed to pay a winter bonus of 2p/l in November and 1p/l in December, with a decision for January being taken at a later date.
It is understood that the November bonus is conditional on a farmer continuing to supply milk to LacPatrick into December. Therefore, if a supplier leaves LacPatrick on 1 December, they will not receive the 2p/l bonus.
Assurances have also been given that the money used to pay the bonus will not be taken off base price. In October, LacPatrick paid from a base of 26.5p/l. The co-op is expected to hold base around the 26 to 26.5p/l mark for the rest of the year.
Unrest
The move from the LacPatrick board comes following considerable unrest at farm level in the past 10 days following the co-op’s decision not to pay a winter bonus for October supplies. LacPatrick had paid a winter bonus in recent years and last year paid 3p/l in October, 2p/l in November and 1p/l in December.
The Irish Farmers Journal monthly milk league for October shows LacPatrick 3.5p/l behind the likes of Glanbia Cheese and Dale Farm.
It is understood that as much as 25m litres of LacPatrick milk could head to other processors on 1 December, and it remains to be seen if this move by LacPatrick will stabilise its pool of 585m litres split between NI and the Republic of Ireland. As much as 50% of the LacPatrick milk pool in NI is without contract.
NI processors
Glanbia Cheese, which LacPatrick already sells a considerable volume of milk to on an annual basis, has been active among the larger farmers in Armagh and Down, with Dale Farm generally focusing its attention in Antrim and Tyrone.
Aurivo has also taken on new suppliers, including the son of Ulster Farmers’ Union deputy president, Victor Chestnutt.
LacPatrick Dairies and Lakeland are currently closing in on a merger after months of talks. The final hurdle is competition and regulatory clearance. Submissions have been made to the competition bodies each side of the Irish border, with a decision expected within 45 days.
In October, both sets of shareholders overwhelmingly backed the merger. The new co-op would be the second largest processor on the island with a milk pool in the region of 1.8bn litres.
Read more
Cracks in LacPatrick milk pool
Lack of LacPatrick bonus causes concern
LacPatrick cuts price and winter bonus
LacPatrick suppliers in Northern Ireland (NI) will now receive a winter bonus for milk supplied in November and December, the Irish Farmers Journal understands.
The board of LacPatrick Dairies has agreed to pay a winter bonus of 2p/l in November and 1p/l in December, with a decision for January being taken at a later date.
It is understood that the November bonus is conditional on a farmer continuing to supply milk to LacPatrick into December. Therefore, if a supplier leaves LacPatrick on 1 December, they will not receive the 2p/l bonus.
Assurances have also been given that the money used to pay the bonus will not be taken off base price. In October, LacPatrick paid from a base of 26.5p/l. The co-op is expected to hold base around the 26 to 26.5p/l mark for the rest of the year.
Unrest
The move from the LacPatrick board comes following considerable unrest at farm level in the past 10 days following the co-op’s decision not to pay a winter bonus for October supplies. LacPatrick had paid a winter bonus in recent years and last year paid 3p/l in October, 2p/l in November and 1p/l in December.
The Irish Farmers Journal monthly milk league for October shows LacPatrick 3.5p/l behind the likes of Glanbia Cheese and Dale Farm.
It is understood that as much as 25m litres of LacPatrick milk could head to other processors on 1 December, and it remains to be seen if this move by LacPatrick will stabilise its pool of 585m litres split between NI and the Republic of Ireland. As much as 50% of the LacPatrick milk pool in NI is without contract.
NI processors
Glanbia Cheese, which LacPatrick already sells a considerable volume of milk to on an annual basis, has been active among the larger farmers in Armagh and Down, with Dale Farm generally focusing its attention in Antrim and Tyrone.
Aurivo has also taken on new suppliers, including the son of Ulster Farmers’ Union deputy president, Victor Chestnutt.
LacPatrick Dairies and Lakeland are currently closing in on a merger after months of talks. The final hurdle is competition and regulatory clearance. Submissions have been made to the competition bodies each side of the Irish border, with a decision expected within 45 days.
In October, both sets of shareholders overwhelmingly backed the merger. The new co-op would be the second largest processor on the island with a milk pool in the region of 1.8bn litres.
Read more
Cracks in LacPatrick milk pool
Lack of LacPatrick bonus causes concern
LacPatrick cuts price and winter bonus
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