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Crediton Dairy launches two-year fixed price contract for farmers

Crediton Dairy said it had launched the scheme in response to requests from some of its farmers.



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Crediton Dairy launches 2 year fixed price contract #TeamDairy

READ MORE: Muller Direct farmers offered new futures contract option

 

The scheme was entirely optional and will run from October 2017 to September 2019.

 

Farmers can fix the price on either 20 per cent or 10 per cent of their monthly base litres for the whole of the 24 month period at the standard litre price of 28ppl.

 

Crediton Dairy has allocated 10 million litres to this scheme. However, if oversubscribed, it may reduce the volume that each farmer has requested to fix.

 

However every farmer wanting to participate was guaranteed at least 10 per cent.

 

If the scheme was undersubscribed then those who have applied may be offered the opportunity of fixing a more than 20 per cent.

 

Production

 

Once in the scheme, a producer cannot opt-out and the rest of their production will continue to be priced in the normal way.

Crediton Dairy said it will discuss the new scheme with its farmers at its next Farmer Day being held later this month.


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