OMSCo introduces milk production bonus of 5p/litre

The aim is to boost the organic milk supply to meet continued export demand
The aim is to boost the organic milk supply to meet continued export demand

Organic Milk Suppliers Cooperative has introduced a production bonus of 5 pence per litre.

Effective from September 1 to end of February 2017, the bonus will apply to all extra litres produced over and above the same period last year.

The aim is to boost the organic milk supply to meet continued export demand, which now accounts for 20% of OMSCo’s revenue and is forecast to increase to almost 30% this year.

This is the second consecutive year that OMSCo has initiated a production bonus, as managing director Richard Hampton explained: "The 2015 bonus resulted in a 12% increase in production, with 90% of members producing more milk than the previous year.

"The increase to 5p for this year reflects the increased cost of winter feed and the continued strengthening of organic export markets in particular.

"The incentive is paid on top of normal seasonality, and thus for many members will mean a milk price for incremental litres in the mid 40p range.

"Export demand continues to be strong, and we are unable to meet demand in certain specialist markets where we have designed products to meet the needs of those customers.

"It’s great we can offer these additional rewards to our members and give them confidence in the future of organic dairying."

OMSCo has 250 farmer members spread across the UK, and is the only national 100% organic, farmer-owned and farmer-run dairy cooperative in the UK.