Aurivo has announced details of its new fixed milk price scheme, which is open to all its milk suppliers in the Republic of Ireland.
The scheme, which will run for 12 months, from January 1st, 2020 through to December 31st, 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 get 32 cent/litre base price for a maximum of 10% of their 2019 manufacturing monthly supply.
This, Aurivo explained, equates to 35.4 cent/litre 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.
A special allocation will apply to new entrants to dairying, who commenced milking after January 1st, 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.
Uncertainty over milk price volatility
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 32 cent/litre for Republic of 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, January 24th, in order to avail of this scheme.” Blewitt concluded.