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02 Dec 2021

Aurivo’s three year ‘Fixed Price Scheme’ benchmark

Aurivo

Aurivo is to launch a three year fixed milk price scheme

The Chairperson of ICMSA’s Dairy Committee, Ger Quain has welcomed the announcement by Aurivo Co-op of its intention to launch a three year fixed milk price scheme at a price of 33.5 cpl.

Mr Quain said the move will effectively set the benchmark for future fixed milk price schemes being considered by other co-ops.

“Fixed milk price schemes afford farmers the opportunity to ‘lock away’ a proportion of their milk supply at a certain price on a voluntary basis and the concept is indeed playing a role in addressing milk price volatility,” he continued, before pointing out that farmers had already stated that the price set in recent schemes was too low and needed to increase.

“This Aurivo announcement represents a significant move in the right direction with the price of 33.5cpl well above previously announced schemes, and on that basis it will now serve as the benchmark for similar schemes offered by milk processors in Ireland.

“This scheme is now the new minimum acceptable and Aurivo deserve some credit for recognising reality and acting on it.”

Meanwhile, the ICMSA chief said the voluntary nature of these schemes was hugely important and there was an onus on the co-ops or processor offering fixed price schemes to make them transparent and ‘unfussy’ without concealed obligations or negative implications for the base milk price.

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