Despite the fact the Carbery fixed milk price scheme is better than all of the other schemes on the market, uptake to the scheme is reported as very slow.

Carbery is just finalising its seventh fixed milk price scheme at 30.8c/l excluding VAT at 3.3% protein and 3.6% fat (33c/l including VAT and summer SCC bonus) with its four participating co-ops – Drinagh, Lisavaird, Barryroe and Bandon (see Table 1). The scheme is available to all milk suppliers at a minimum of 10% of 2020 supply volumes.

Lakeland (ROI) this week announced details of a new scheme that is split across summer and winter months. The price is up about 1 c/l from the last three-year scheme.

The price is 29.35 c/litre ex VAT at 3.3% protein and 3.6% fat for summer months (April to September) and 31.25c/l excluding VAT for the so-called winter months (October to March).

Dairygold’s most recent offer was a fixed milk price scheme with a base price of 29.25 c/l (excluding VAT), which works out at 31.5c/l plus VAT.

To compare like for like, the price excludes quality milk bonuses (0.65c/l) and is for milk at 3.3% protein and 3.6% butterfat. The voluntary scheme runs from 1 March 2019 to 30 November 2021.

The most recent Aurivo offering was a one-year option ending in December 2020. Glanbia has a number of schemes in play for various durations. The one-year scheme ends December 2020.

The Arrabawn three-year scheme runs to 2022. The Kerry offering is a two-year scheme to 2021.

Northern Ireland

In Northern Ireland, several processors have announced details of new fixed price contracts over the past fortnight.

Glanbia Milk launched a new 26-month contract, starting on 1 November. The contract pays guaranteed base price of 27p/l (30 c/l) before normal milk quality premiums are applied.

Glanbia has a set volume of milk forward-sold at a guaranteed price

Glanbia’s winter bonus payment of 1.5p/l from October to February will also be paid on milk committed under the contract.

There is no minimum, or maximum volume that farmers can commit under the contract. Glanbia has a set volume of milk forward-sold at a guaranteed price.

Once all applications have been received, the processor will tally up the volume suppliers have committed. Should this exceed the total amount of milk forward-sold, Glanbia will scale back suppliers’ fixed volumes as necessary.

Dale Farm

Dale Farm has offered a new three-year fixed price contract which starts on 1 January 2021 and guarantees a base price of 26p/l (29 c/l) on all milk supplied from April to September, increasing to 29p/l (32.2 c/l) from October to March.

The co-op’s 0.3p/l loyalty bonus is included within the outlined base prices, as is its 2p/l winter bonus payment.

Farmers signing up to the contract must commit a minimum 10% of the milk volume supplied during the 12 months

Bonus payments for milk quality and volume are payable on top of guaranteed base prices.

Farmers signing up to the contract must commit a minimum 10% of the milk volume supplied during the 12 months from October 2019 to September 2020. Volumes can be increased in 5% increments to a maximum 30% of annual supply.

Lakeland

Lakeland is renewing its current fixed price contract for another three-year term. Suppliers can commit either 5% or 10% of annual milk supply at a guaranteed base of 26p/l (29 c/l) from April to September, rising to 28p/l (31.2 c/l) from October to March.

Winter bonus premiums are excluded under the fixed price contract, but normal bonus payments for milk quality and volume are applicable.

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