Details of Glanbia Ingredients Ireland’s (GII’s) Fixed Milk Price Scheme for 2018 have recently been announced.
It is hoped that phase 10 of GII’s Fixed Milk Price Scheme will offer milk suppliers the option to protect a portion of their milk supply, from the extremes of market price volatility.
Phase 10 is a one-year scheme which offers a milk price of 31c/L including VAT for the full year of 2018, according to GII.
Having launched a scheme every year since 2011, GII is acknowledged as a global leader in the development of market price volatility tools, the Chairman of Glanbia, Henry Corbally, said.
A total of 20% of GII’s milk pool is now in Fixed Milk Price Schemes, with over 60% of suppliers participating, he added.
These schemes are totally voluntary, but I am delighted that over 2,000 of our farmers now avail of the option to reduce milk price risk on a portion of their milk supply.
Meanwhile, suppliers currently participating in active schemes have, on average, 25% of their supply volumes in fixed price arrangements (based on 2016 supply volumes), according to the Director of Strategy and Supply Development with GII, Sean Molloy.
“We will continue to explore innovative ways to help our milk suppliers and customers cope with market price volatility.
“Phase 10 offers milk suppliers the option to fix the price for a portion of their 2018 milk supply, as part of risk management for their business,” he said.
Breakdown of Phase 10
Phase 10 of the Fixed Milk Price Scheme will run from January to December in 2018; it will pay a base milk price of 31c/L including VAT.
The scheme price of 31c/L is based on standard constituents of 3.6% butterfat and 3.3% protein. Actual constituents greater or less than standard constituents are paid for at the scheme price, according to GII.
There are no adjustments for market price movements or farm input cost movements, it added.
Any support payment made by Glanbia Co-operative Society to its members…