By FWi staff

MILK producers can now sell milk on the open market following the launch of the first market-related milk supply contract.

The Milk Group are offering dairy farmers the opportunity to sell a proportion of their milk through the companys National Milk Auction, secondary trading, and through spot milk sales activities, in a bid to improve their bottom line price.

The market related supply contract will be combined with The Milk Groups level supply or seasonal milk contract and will allow producers to sell 20% of their predicted annual output onto the open market.

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The price received will be based on average returns from the companys combined monthly trading activities.

“Our new contract offers dairy farmers the chance to tap into short-term, demand related milk markets and to capitalise on the current market values,” says chief executive Robert Audas.

“For the first time, producers can be assured that their milk will achieve a price based on the seasonally variable prices in the marketplace.

“We see this as a major step forward and one which will enable

“The Milk Group to pass on the benefits of an increasing level of trading activity in short-term, spot and monthly milk markets directly to our members.”