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From 1 April, suppliers of Dale Farm who produce high solids milk will be rewarded under the co-op’s new milk payment system.
In the 12 months to March 2023, the value of each 0.01% butterfat increment above base increases from 0.022p/l to 0.025p/l. However, the base level for butterfat has also increased from 3.85% to 3.88%.
The value of each protein increment has moved from 0.036p/l to 0.039p/l, with the base level rising from 3.18% to 3.20%.
The changes mean that if a farmer does not increase milk solids, the value of milk sold in the next 12 months will be reduced. Bonus payments on cell counts are unaltered.
The new payment rates are the first step in a three-year transition to encourage suppliers to produce higher milk solids. In year two (April 2023 to March 2024), the value of butterfat and protein rises to 0.028p/l and 0.043p/l for every 0.01% increment above a base of 3.91% and 3.22% respectively.
By year three, butterfat and protein increase to 0.031p/l and 0.048p/l for every 0.01% increment above a respective base of 3.95% and 3.24%.
The first processor to change its payment system towards encouraging higher solids milk was Glanbia Ireland. A new system applied from April 2021, and has now moved into its second year.
From 1 April 2022 the value of butterfat rises from 0.021p/l to 0.024p/l for every 0.01% increment above base level, which increases from 3.85% to 3.87%.
For protein, bonus payments rise from 0.037p/l to 0.043p/l for every 0.01% above base. The protein base has increased from 3.20% to 3.22%.
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