DAIRY cooperative Dale Farm has launched a Fixed Milk Price Contract option to its milk producers, due to commence on January 1, 2021.
Farmers supplying milk 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 26ppl (April to September) and 29ppl (October to March). This price is for base quality milk of 3.85 per cent butterfat and 3.18 per cent protein.
Milk supplied on the contract will be eligible for quality payments for SCC, Bactocount, protein and but-terfat as per the standard quality payments of Dale Farm milk quality payments.
Stephen Cameron, pictured above, Group Commercial Director with Dale Farm, said: “We are pleased to offer this Fixed Milk Price Contract option to dairy farmers, giving them a choice on how to manage their business. A contract such as this can offer protection from volatile dairy markets, offering a guaranteed price for the next three years. Opting into the contract is, of course, a decision that all farmers must make based on their own circumstances.”
Producers can offer either 10 per cent, 15 per cent, 20 per cent, 25 per cent or 30 per cent of their supply for each of the 12 months from October 2019 to September 2020 for inclusion as the monthly volume in the fixed price contract.