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Member reaction to the new Profile Adjustment Scheme, launched last month, has been very positive.

The new system of seasonality payments is available as an alternative to Dual Pricing from 1 April 2008.

The Profile Adjustment Scheme continues to reward an autumn biased milk production profile more than spring orientated production reflecting the difference in market value but significantly improves the cashflow of members (see adjacent graph).

This is achieved by calculating an adjustment to the milk price at the beginning of April each year which is based on the previous year’s milk production profile. Once calculated, the same adjustment applies each month for the full year making it much simpler to calculate forward milk prices. Where a member’s profile improves over the year, moving them into a higher band, a retrospective payment will be made to reflect that.

Commenting on the launch of the new scheme Membership Director, Alan Taylor, said: “We have listened to members concerns about cashflow in the spring and early summer period and responded by introducing the Profile Adjustment Scheme. I believe this move will be beneficial as it provides members with a choice of staying on the current Dual Pricing system or moving to the new Profile Adjustment Scheme depending upon which is most suitable for their business.”

Members who want to move across to the new Profile Adjustment Scheme next year need to complete and return their reply form by 29 February 2008.