By FWi staff
AXIS members are set to benefit from a major overhaul of its milk pricing scheme, designed to stimulate growth and increase producer returns.
Due to start in January, the new package is a complete reform of the way running costs are recognised in the milk price.
It is a system which provides a direct incentive for members to expand by paying a 0.6ppl volume bonus on every extra litre produced over 1000 litres a day.
“The result is straightforward and uncomplicated.
“It gives our members the very clear message that Axis is here to grow and we want our members to grow with us,” said chairman Roger Evans.
The 13.50 standard adjustment and 5.50 EODC bonus will be abolished and replaced by a new system of deductions of 2.5ppl on the first 300l per day, and an every-day collection adjustment of 6.00.
In addition, Axis will pay any trading bonus from October as a flat rate per litre.
From April 2001 producers will be able to opt out of seasonality for a year and will benefit from a revised profile with new bonuses in the winter months and smaller bonuses in July and August.
“This new pricing package has something for everyone. No member will pay more than they currently do, all EODC members will benefit and there is relief for smaller members producing up to 300l per day,” adds Mr. Evans.