The board of LacPatrick agreed this Wednesday to add a 1c/l winter bonus to its September milk price, bringing the new price in the Republic to 24.7c/l excluding VAT (including the 0.25c/l SDAS bonus).

The price in Northern Ireland increases to 20.2p/l including the 0.2 Red Tractor bonus.

Fixed price option 4c/l or 5p/l higher than current price

LacPatrick will also open its first fixed milk price scheme, allowing its suppliers to lock up to 20% of their supply for the calendar year 2017 at 28.4c/l excluding VAT in the Republic and 25p/l in Northern Ireland. The price is calculated at 3.6% fat and 3.3% protein, but suppliers achieving better constituents will receive the usual top-ups.

The scheme is capped at 10% of LacPatrick’s milk pool or around 60m litres. If it becomes oversubscribed, this maximum amount will be shared between applicants.

Payments for milk volumes supplied under the scheme will issue to farmers on the 10th of every month, as there will be no need to wait for the next board meeting to set the monthly price.

Farmers with a milk-supply agreement who participate in the SDAS or Red Tractor quality assurance schemes will be eligible to apply for the scheme.

LacPatrick is planning to communicate full details to its members in the coming days and open applications for two to three weeks, with the aim of receiving expression of interest from farmers by mid-November.

Patrick Donohoe contributed reporting for this story.

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