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Dale Farm has announced changes to its volume bonuses with the new payments to take effect from 1 April 2025.
Currently, the farmer owned co-op pays an annual rebate based on yearly production, with this payment issued in June during the last two years.
However, in a letter to suppliers outlining the planned changes, Dale Farm said it will now pay on monthly volume.
Volume bands
At present, volume bonuses start at 0.3p/l for a producer supplying 650,000 to 1m litres annually.
The bonus increases to 0.4p/l at 1m to 2m litres, 0.5p/l for 2m to 2.5m litres, 0.75p/l from 2.5 to 3m litres and 0.9p/l for annual volumes above 3m litres.
However, from April 2025, bonuses will start with a 0.2p/l premium on monthly volumes from 35,000 litres up to 50,000 litres.
For 50,001 to 85,000 litres, a 0.3p/l bonus will be paid, rising to 0.4p/l on 85,001 to 125,000 litres, 0.5p/l on 125,001 to 165,000 litres, 0.6p/l on 165,001 to 210,000 litres and 0.75p/l on 210,001 to 250,000 litres. Anything over this threshold is paid at 1p/l.
More farmers
Moving to a monthly volume threshold means an additional 400 farmers supplying the co-op will now receive a volume payment.
Previously, these farmers did not meet the 650,000 litre threshold to qualify for the annual rebate.
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