Milk Link has announced a 0.5ppl increase in the production bonus paid to its members from 1 July 2008. The total bonus on all litres produced will rise to 0.8ppl, provided production is at least the same, or above last year on a month-by-month basis.

The move will hopefully stimulate further production, the firm’s chief executive, Neil Kennedy said. “Although our member milk volumes are stable year-on-year, the securing of further important business wins with key retail customers means that we are now in a position where we need to incentivise higher milk production.”

The increased bonus payment follows the £4m of processing interest payments made to Milk Link members last week.

The need for members to cover their production with quota for the 2008/09 year has also been removed and any withheld money will be paid with the next milk cheque. The Board has also announced the removal of the (112%) upper limit from the level supply adjustment for all liquid schedules.