This change applies to those partaking in fixed-milk-price scheme (17) and the fixed-milk-price support scheme. This means that a supplier will be able to cap their volume of milk under both schemes at a maximum combined total of 35 per cent of their 2021 annual milk volume. The co-op has said that volumes contracted under scheme 18 are excluded from the adjustment. Volumes above the combined maximum threshold of 35 per cent will be cancelled, with volumes in the support scheme cancelled first, followed by those in scheme 17. And, those volumes will be paid at the Tirlán monthly milk price., the processor has confirmed.
Suppliers whose volumes are above the 35 per cent combined threshold will be notified and offered the option to opt in and accept the adjustment by Wednesday March, 15, 2023. The adjustment will be backdated to January 2023 and reflected in the March milk payment paid in April. Suppliers still have the option to partake in the fixed-milk-price support scheme up until March 15. This adjustment will result in a reduction in contracted volumes in fixed-milk-price schemes for suppliers with larger volumes contracted. The processor said that the number of suppliers and volume of milk contracted under fixed-price schemes has fallen significantly in 2023.