North Cork Co-op has offered revised contracts to its milk suppliers who are tied into fixed-milk-price (FMP) schemes.

The co-op issued the revised terms to farmers over the last week and has since been meeting with individual suppliers to assess their reaction to the new package.

The Irish Farmers Journal understands that the co-op has offered a 10c/l top-up for milk supplied under FMP contracts this year.

This top-up can be used on 75% of the volume fixed, and takes the price paid on this milk to at least 41c/l.

However, there is a requirement for those who take up the revised scheme to lock in the same volume of milk for 2023 at 42c/l.

Farmers said they were unsure if volumes locked into FMP contracts for 2023 would be covered by the new package.

It is believed that close to 100 North Cork suppliers are on FMP agreements. Some of this milk is contracted at prices as low as 31.5c/l.

Teagasc estimates that average milk production costs have hit 34c/l excluding labour this year.

All of the milk supplied under FMP deals by North Cork is handled by Ornua.

The revised FMP contract terms offered by North Cork Co-op follow moves by Ornua to improve returns to the dairy processors tied into such deals.

Farmers have expressed reservations around the requirement to supply milk at 42c/l for 2023. They have also sought greater clarity on how milk volumes contracted at low prices for 2023 will be handled.

“If milk prices drop back this could be a good deal, but it’ll be a poor deal if the price holds,” one farmer said.

“And what happens if they don’t move on the milk fixed for 2023.

“You could have a situation next year where a farmer has half his milk getting 31.5c/l, most of the other half on 42c/l, and very little at the market price,” he added.