The scheme guarantees a secure price on a fixed proportion of supply over a defined period, in order to help suppliers manage milk price volatility.
Details of a new fixed milk price scheme have been announced by Aurivo, which is open to all its milk suppliers in the Republic of Ireland and Northern Ireland.
The scheme has a fixed period from 1 October 2019 to 30 September 2020 and guarantees a secure price on a fixed proportion of supply over a defined period, in order to help suppliers manage milk price volatility.
Participating suppliers in the Republic of Ireland will be guaranteed 29.8c/l, excluding VAT, base price for a maximum of 10% of their 2018 manufacturing monthly supply, for milk supplied at 3.6% butterfat and 3.3% protein.
Suppliers in Northern Ireland are also invited to participate in the scheme, which would guarantee them 27p/l. There will also be a special allocation for new entrants to dairying, who commenced milking after 1 January 2019.
While the voluntary scheme is open to all milk suppliers, they 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.
“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,” said Aurivo general manager Stephen Blewitt.
“We strongly encourage interested suppliers to submit their application before the closing date of Friday 4 October in order to avail of this scheme,” he added.