April 7 - Arla Foods is encouraging Arla Foods Milk Partnership (AFMP) members to increase milk production in the autumn trough by paying a 5ppl supplement on every litre of milk supplied over and above a member's base average daily production (BADP) figure during September, October and November 2008.
Commenting on Arla's decision to incentivise members, Hanne Sondergaard, deputy chief executive for Arla Foods UK, said: "We have a deficit of milk between September and November each year, when milk production is typically at its lowest. This, in previous years, has led to us purchasing volume on what can be an expensive spot market.
"We would prefer AFMP members to receive this benefit rather than it being paid to suppliers in the spot market and we have agreed with the Partnership that members will be offered a financial incentive to produce additional volume over and above their BADP, during the 2008 trough months."
Jonathan Ovens, AFMP chairman, adds: "I'm delighted that Arla Foods has demonstrated its commitment to Partnership members through this initiative. We are informing producers immediately to give them the opportunity to plan ahead if they wish to maximise the financial benefit from this incentive."