Connacht Gold planning forward-pricing scheme
Option for customers to agree price for 10-15pc of supply
Connacht Gold is set to introduce a forward-pricing mechanism for manufacturing milk over the coming months.
The scheme details have still to be finalised, but it is envisaged that farmers will be able to agree a forward price for between 10pc and 15pc of their overall supply.
The level at which the forward price will be set has yet to be agreed, but it is likely to be below the current milk price.
Connacht Gold chief executive Aaron Forde described plans for the introduction of the scheme as "work in progress".
Mr Forde said the initiative was motivated by fears of continuing volatility in global dairy markets.
He said a forward-pricing structure would provide a degree of protection for milk producers, the co-op and its customers against peaks and troughs in milk and dairy commodity prices.
Talks between Connacht Gold and a number of customers regarding the scheme are ongoing, Mr Forde claimed.