June 4 - Milk Link has announced a 0.5 pence per litre (ppl) increase to the production bonus paid to its Members from 1st July 2008. The increase means that a bonus totalling 0.8ppl will now be paid on all litres produced by a Member provided their production is at least the same level or above last year on a month by month basis.
Commenting on the announcement, Neil Kennedy, Milk Link Chief Executive said, “We have been working extremely hard with our cheese, long life milk, ingredients and raw milk customers and have secured price increases from them. These have enabled us to increase the production bonus payable to Members, whilst at the same time absorb the significant rises of the cost of energy and fuel impacting on our processing and distribution operations. The increased bonus payment comes on top of the £4 million of Processing Interest Payments which were made to Milk Link Members last week.
“We have chosen to increase the production bonus in order to stimulate further our Member milk production. 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.”
To further encourage production, Milk Link has removed the need for Members to cover their production with quota for the 2008/09 quota year. This decision is implemented with immediate effect and any monies currently withheld will be paid into Members’ bank accounts with their next milk cheque. The Board has also announced the removal of the (112%) upper limit from the level supply adjustment for all liquid schedules.