Lakeland Dairies has plans to launch a new three-year fixed-price milk contract, AgriLand can reveal.
The price will remain unchanged from the firm’s last fixed-price contract, offering Northern Ireland suppliers 26p/L from March until September’s milk and 28p/L for milk produced in October through to February.
It’s expected those in the Republic of Ireland will be paid around 33.5c/L (including VAT), the same as the 2017 version of the contract.
The contract also offers volume and other bonuses on top of the monthly base price.
The co-op is yet to formally announce the scheme to suppliers but details can be found on the members’ section of the co-op’s website.
It’s the third version of a fixed-price contract launched by the firm and comes as the 2017 three-year fixed deal comes to an end on December 31.
Last time around, suppliers were allowed to commit up to 10% of their yield, based on their 2016 milk production rates.
The co-op’s current monthly price is 26.55p/L for Northern Ireland suppliers and 32.28c/L for those in the Republic of Ireland.
Farmers will have until November 23 to take up the offer.
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The news comes just days after rival Dale Farm announced it would also launch a new three-year fixed-price contract.
The Dale Farm version is also set to start on January 1, 2021, and will see farms which sign up supply an agreed amount of milk per month at a base price of 26p/L (April to September) and 29p/L (October to March).
The price is for base quality milk of 3.85% butterfat and 3.18% protein with deductions and bonuses for milk of a lower or higher standard.
More to follow.
