Dairy cooperative Dale Farm has introduced a Fixed Milk Price contract option to its milk producers, due to commence in January 2018.
Members of and suppliers to Dale Farm are being given the opportunity to sign up to a voluntary three-year Fixed Milk Price Contract to supply an agreed fixed amount of milk per month at a base price of 27ppl. Milk supplied on the contract will be eligible for quality payments for SCC, Bactocount, protein and butterfat as per the standard quality payments of Dale Farm Cooperative as well as the large producer rebate bonus.
Nick Whelan, Chief Executive of Dale Farm Group said: “We are keen to grow our milk pool whilst at the same time providing our producers with the tools they need to reduce risk. A fixed price contract gives the dairy farmer a guaranteed 27ppl for three years.
“We are delighted to be offering our suppliers and members a choice on how to manage their business. It is however a decision for each farmer to consider based on their own circumstances as, of course, markets can go up as well as down.”
Producers can offer 10%, 20%, 30%, 40%, 50% or 60% of their trough month supply for inclusion as the monthly fixed volume in the fixed price contract. Trough month supply is the volume of milk in a supplier’s lowest volume supply month, between September 2016 and August 2017.
Applications for Dale Farm members and suppliers are now open and expressions of interest are to be returned to Dale Farm by 6th October. Contracts will be agreed mid-November, with the contract becoming effective 1st January 2018.