Milk Link members are set to receive an average 0.5p/litre extra from July following the announcement of a new market-related pricing schedule.

Farmers will be offered the opportunity to join the schedule depending on their location within the co-op’s milk field.

A new manufacturing schedule, available to farmers close to Milk Link’s creameries in the southwest and Scotland, will have higher butterfat and protein payments and the butterfat “collar” introduced in 2006 will also be removed.

Some farmers will be offered a West County liquid schedule, which will bring them in line with those already on Milk Link’s London liquid schedule.

The London liquid schedule will be extended to all members in southeast England.

‘99% better-off’

There will be an increase in the Channel Island premium and all organic producers on a constituent schedule will have the option to move to the higher-priced organic liquid schedule. 

Communications director Phil Cork said 99% of suppliers would be better-off following the changes.

Those who felt they would lose out by switching would be able to stick with their existing arrangement, he said. “Nobody is going to be forced to take a lower price.”

Barry Nicholls, Milk Link chief executive, said: “The price rises demonstrate our commitment to increasing returns to our Members for their milk, further strengthen our milk pool and give our customers greater security of supply.

“Above all, by introducing further market related pricing we will be able to leverage greater efficiencies within our processing operations from having the right milk in the right place at the right time.”