Lakeland Dairies has introduced a new Fixed Milk Price Scheme aimed at helping milk suppliers to cope with continuing dairy market volatility which is impacting milk prices.
Lakeland says the scheme will provide better certainty on milk price for a fixed proportion of milk supplied by a dairy farmer over a set period of time.
Participation is voluntary and Lakeland suppliers can decide to put either 5% or 10% of their annual milk volumes into the scheme (subject to demand).
Milk will be bought under the fixed price scheme on the same standard purchase conditions as all other milk, including relevant bonuses. The scheme will run for 31 months from June 1, 2016 to the end of December 2018.
Lakeland says the prices on offer in the scheme are equivalent to approximately 31c/L (VAT inclusive) for the average litre of milk delivered by Lakeland suppliers in the Republic.
Michael Hanley, Group CEO of Lakeland Dairies says the co-op wants to ease the burden of current dairy market volatility for our milk suppliers.
“As a farmer owned co-operative society, we are committed to paying the highest possible milk price in line with market conditions. We’re very pleased to be in a position to offer this additional new support to our milk suppliers.
“The new Fixed Milk Price Scheme will benefit participating milk producers with a greater level of certainty and stability,” he said.
