The scheme will run for 12 months, from January 1, 2020, through to December 31, 2020.
It “guarantees a secure price on a fixed proportion of supply over a defined period, in order to help suppliers manage milk price volatility”, according to the Sligo-headquartered co-op.
Participating suppliers in the Republic of Ireland will get 32c/L base price for a maximum of 10% of their 2019 manufacturing monthly supply.
This equates to 35.4c/L at expected average solids for the term of the scheme. This is the sixth fixed milk price scheme for suppliers in the Republic of Ireland, Aurivo notes.
A special allocation will apply to new entrants to dairying, who commenced milking after January 1, 2020.
While the scheme is open to all milk suppliers and participation is voluntary, suppliers must have signed a Milk Supply Agreement and must be certified in the Bord Bia Sustainability Dairy Assurance Scheme in order to meet eligibility requirements.
Commenting on the announcement, Stephen Blewitt, Aurivo general manager, said:
“Aurivo has over 1,000 suppliers, many of whom are faced with uncertainty over milk price volatility.
This scheme helps them to surmount this challenge by guaranteeing a portion of their supply over the 12-month period, regardless of other external factors that may arise.
“We are confident that the base price of 32c/L for Republic of Ireland suppliers will lead to a strong uptake, as this is a relatively good return in the current market,” he added.
“We strongly encourage interested suppliers to submit their application before the closing date of Friday, January 24, in order to avail of this scheme,” Blewitt concluded.