Aurivo is the latest milk processor to revamp its payment structure for buying milk in NI. Along with a new winter bonus payment, it has changed its payment model for milk quality. All changes are effective from 1 October 2016.

In a letter issued to producers last week, details of the new payments were outlined. The co-op will now pay an additional winter bonus of 2p/l on all milk supplied in October and November. Milk supplied in December and January will receive an additional 1p/l.

There will no longer be a February payment of 2p/l. Previously, Aurivo paid a winter bonus of 2p/l on milk supplied in November and February only.

Milk quality

The base for butterfat is still 3.8% to 3.84%. However, every incremental increase, or decrease, of 0.05% in butterfat is now worth 0.1p/l, rather than 0.09p/l.

For protein, base is still 3.15% to 3.19% with each 0.05% increase, or decrease, worth 0.16p/l, compared with 0.13p/l under the previous arrangement.

Bonus payments for TBC and SCC remain unchanged. But an additional payment of 0.35p/l is available for producers producing milk with TBC below 10,000 and SCC below 150,000.

Benefit

For a one million-litre producer with good quality milk, supplying 67,000 litres of milk in October at 4.52% butterfat, 3.53% protein and cell counts below 10 for TBC and 100,000 SCC, the new bonus payments are worth an extra £1,809 in income.

For a one million-litre producer with average quality milk, supplying 67,000 litres of milk in October at 4.12% butterfat, 3.36% protein, TBC below 20 and SCC below 200,000, the total net benefit is worth £1,460 in additional income.