Milk Link increases members’ milk prices and cash flow
Milk Link is to increase its Member milk price from 1st April by 1.0 pence per litre (ppl) for both manufacturing and liquid schedules. The latest increase means that Milk Links standard litre Member price for both manufacturing and liquid milk will now be 27.00ppl.
The April rise means that over the last 12 months Milk Link has increased its Member milk price by 3.75ppl for manufacturing and 3.53ppl for liquid (excluding the forthcoming 2010/11 Processing Interest Payment which will be paid to Members at the end of May).
In addition, a further 0.3ppl will be added to the Member base price from 1st April. This is to compensate for a 0.3ppl decrease in the Milk Link production bonus which, following consultation with Members and as announced in June 2010, will reduce from 0.8ppl to 0.5ppl from the start of April.
The Milk Link Board has also confirmed that the current 0.5ppl Member investment levy will end from 1st April providing a further boost to Members cash flow.
Commenting on the announcement, Neil Kennedy, Milk Link Chief Executive said: The milk price increase and end of the investment levy will provide a much needed boost to our Members farm incomes and cash flow at a time when they are under considerable financial pressure due to on farm cost inflation. The increase is a result of our successfully securing price increases combined with strong ongoing returns from the commodities markets.
The withdrawal of the investment levy is a key milestone for Milk Link and our Members. It marks the fact that the business has established strong financial, operational and commercial foundations on which to build going forward.
The price increases apply to all Milk Link Member schedules with the exception of organic which will remain in line with the OMSCo alliance price.
The end of the current investment levy applies to all Members who joined Milk Link before 31st March 2009. Those Members who joined after this date will have to continue to pay the levy so that they accumulate a minimum of three years worth of contributions into their Member Capital Account.