Organic Milk Suppliers Co-operative (OMSCo) has announced a production bonus of 5ppl from 1 September
The bonus will be paid between 1 September and 28 February 2017 on all extra litres produced above the same period last year.
The bonus aims to increase supply due to continued export demand. Exports are estimated to increase to about 30 per cent of OMSCo’s revenue this year.
Last year, OMSCo offered a 3ppl bonus between September and February which resulted in a 12 per cent increase in production.
Richard Hampton, OMSCo managing director, said for many members it will mean a milk price in the mid 40ppl range for additional litres.
“Export demand continues to be strong, and we are unable to meet demand in certain specialist markets where we have designed products to meet the needs of those customers,” he said.
“It is great we can offer these additional rewards to our members and give them confidence in the future of organic dairying.”
Graham Vallis, an OMSCo board member and who milks 180 cows in Devon said the incentive is ‘very welcome.’
“It builds confidence and sends members a strong signal that the work we have done to create and enter new markets is paying off. As a result, members now have a stable environment in which to manage and drive their businesses.
“Even with the consideration of higher feed costs this winter, the winter bonus is on top of a stable milk price and gives members great confidence in the future of the organic dairy business,” he added.