Dale Farm launches Fixed Milk Price Contract

Dale Farm is offering its dairy farmers a new three year contract option
Dale Farm is offering its dairy farmers a new three year contract option

Dairy cooperative Dale Farm has launched a Fixed Milk Price Contract option for its 1,300 milk producers, due to commence on 1 January 2021.

Farmers supplying milk to the NI-based co-op are being given the opportunity to sign up to the voluntary three-year contract.

Producers will supply an agreed fixed amount of milk per month at a base price of 26ppl (April to September) and 29ppl (October to March).

This price is for base quality milk of 3.85% butterfat and 3.18% protein.

Milk supplied on the contract will be eligible for quality payments for SCC, Bactocount, protein and butterfat as per the standard quality payments of Dale Farm milk quality payments.

Stephen Cameron, group commercial director with Dale Farm, said the option would give farmers a choice on how to manage their business.

"A contract such as this can offer protection from volatile dairy markets, offering a guaranteed price for the next three years," he added.

"Opting into the contract is, of course, a decision that all farmers must make based on their own circumstances.”

Producers can offer either 10%, 15%, 20%, 25% or 30% of their supply for each of the 12 months from October 2019 to September 2020 for inclusion as the monthly volume in the fixed price contract.

Applications for the contract are now open to all Dale Farm milk producers and must be returned to the co-operative by 5pm on Friday 20 November.