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Glanbia Milk is making sweeping changes to its pricing structure in Northern Ireland from 1 April, with the aim of rewarding suppliers for producing higher milk solids.
The new payments will be implemented over a four-year transition period.
In year one (April 2021 to March 2022), the base for butterfat will increase to 3.85%, with protein set at 3.2%.
The value of butterfat will rise to 0.021p/l for every 0.01% change in butterfat above or below base level.
For protein, suppliers will be paid 0.037p/l for every 0.01% increment change.
Other increments
In year two, butterfat rises to a 3.87% base, with a payment of 0.024p/l for every 0.01% increment change.
Protein rises to a 3.22% base, with a 0.043p/l increment value.
In years three and four, butterfat rises to a 3.88% and 3.9% base, with increments rising to 0.027p/l and 0.03p/l respectively.
Protein rises to a base of 3.23% and 3.25%, with increment values increasing to 0.049p/l and 0.054p/l.
Current payment
Under Glanbia Milk’s current payment system, the base for butterfat is 3.8% to 3.84%, with an incremental bonus of 0.018p/l for every 0.01% change.
For protein, base is currently 3.15% to 3.19%, with a payment of 0.032p/l per 0.01% increase above base.
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