Aurivo has announced details of its new fixed milk price scheme, which is open to all its milk suppliers in the Republic of Ireland and Northern Ireland.
The scheme — which will run for 12 months — from October 1st, 2019 through to September, 30th 2020, 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 31.5 cent/litre base price for a maximum of 10% of their 2018 manufacturing monthly supply — this equates to 34.6 cent/litre at expected average solids for the term of the scheme.
Suppliers in Northern Ireland are also invited to participate in the scheme, which would guarantee them 27 pence/litre.
This is the fifth fixed milk price scheme for suppliers in the Republic of Ireland and the fourth Scheme offered to suppliers in Northern Ireland.
A special allocation will apply to new entrants to dairying, who commenced milking after January 1st, 2019.
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.
Over 1,000 suppliers
Commenting on the announcement, Stephen Blewitt, General Manager, Aurivo 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 guaranteed 31.5 cent/litre for Republic of Ireland suppliers and 27 pence/litre for our Northern Ireland suppliers will lead to a strong uptake, as this is a relatively good return in the current market.”
“We strongly encourage interested suppliers to submit their application before the closing date of Friday, October 4th, in order to avail of this scheme.”
For more information or to download an application form, see here.