Aurivo estimates that less than 10% of its NI supply base have signed up to their second fixed price scheme.

Starting on 1 January 2017, producers could fix up to a maximum of 10% of their monthly milk supply on a 36-month term, ending on 31 December 2019. The fixed price offered was 25p/l for milk at their standard butterfat of 3.82% and protein at 3.16%.

The winter bonus is excluded from the fixed price arrangement, but normal quality adjustments apply.

Aurivo launched an earlier fixed price agreement on 1 August 2016 with around 30% of its NI suppliers agreeing to fix up to 10% of their monthly milk at 23p/l for 30 months.

LacPatrick also has a fixed price agreement up and running with 70 producers committing around 14m litres.

Producers could fix 10%, 15% or 20% of their monthly supply at 25.75p/l for 12 months from 1 January. Plans are in place for a second fixed price scheme later this year.

The other co-op with a fixed price scheme is Lakeland, with a scheme that started on 1 June 2016. Farmers could commit 5% or 10% of their monthly supply at a fixed price of 21.7p/l.

Given how dairy prices have moved since then, the offer now looks unattractive. Around 3% of northern suppliers are understood to have signed the agreement. Lakeland is potentially looking at a second fixed price option, depending on how markets perform this year as well as exchange rates.

Other co-ops are understood to have looked at the possibility of introducing fixed price schemes in NI, including Dale Farm, although as yet, nothing substantive has emerged. Crucial to putting a scheme in place is finding a customer willing to lock-in their price over a longer period.