Glanbia Ingredients Ireland (GII) has launched a new Fixed Milk Price Scheme with a base price of 29c/L (including VAT) at reference milk constituents of 3.6% butterfat and 3.3% protein.
The voluntary Scheme (Phase 7) will run from April 1, 2016 to the end of 2018 (two years and nine months). Glanbia’s most recent milk price, January, was set at 25c/L.
According to Glanbia, key elements of Scheme 7 are:
- The minimum base milk price throughout the Scheme duration is 29c/L (Inc Vat) at 3.6% butterfat and 3.3% protein;
- The milk volume allocated to each Scheme participant will automatically double after 15 months;
- For months 1 to 15 (April 2016 to June 2017), participants in the Scheme will be paid a composite price of 29c/L, including any support payment from Glanbia Co-Operative Society to its members;
- From months 16 to 33 (July 2017 to December 2018), participants receive any Glanbia Co-operative support payment on top of the fixed 29c/L price.
Priority access to this latest Scheme (Phase 7) will be given to manufacturing milk suppliers that applied for the heavily over-subscribed Scheme 6 in December 2015. An allocation will also be made available for 2016 new entrants.
Glanbia chairman Henry Corbally said that Fixed Milk Price Schemes have proven to be extremely popular with Glanbia milk suppliers, who value the option to fix the price of a portion of their milk supply in order to protect against income volatility.
Full details of the Scheme will be made available to all manufacturing milk suppliers in the coming weeks.
Dairygold launched its fixed milk price scheme in recent weeks, offering a price of 30.20c/L, based on butterfats at 3.6% and protein at 3.3%.
