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2014 Pay Price

NEW ENGLAND (VERMONT-MAINE-NEW HAMPSHIRE-RHODE ISLAND-CONNECTICUT-MASSACHUSETTS)


PAY PRICE PRINCIPLE:

Our foundation tenets, rooted in collective bargaining, have always been supply management and a sustainable price for our producers. The organic premium over the conventional marketplace) has varied from $1.50-$14.00/cwt. during our 26 year history. The cooperative makes all efforts to meet the established budget base price; however, the price can be adjusted by the Board of Directors.

Pay Price: $31.05/cwt. 
(Base component price $25.55 plus $1.00 National Premium, $1.00 MAP [Market Adjustment Premium] and $3.50 Regional Premium)

Based on component levels of 3.5% Butterfat; 3.05% Protein; 5.65% Other Solids

COMPONENT PRICING:
CROPP's pay price program, noted below, is dependent on the organic utilization of our milk supply. The component prices would be as follows:

Butterfat$2.0943 per pound
Protein$2.0943 per pound
Other Solids$2.0943 per pound

NATIONAL PREMIUM:
A National Premium of $1.00/cwt, which is above the standard pay program, will be paid to Vermont, Maine, New Hampshire, Rhode Island, Connecticut and Massachusetts farmers.

MARKET ADJUSTMENT PREMIUM (MAP): 
The cooperative works hard to achieve a sustainable stable pay program for farmers.  Occasionally, the cooperative will apply a Market Adjustment Premium (MAP). MAP payments are payments above the standard pay program and can be rescinded by the Board of Directors if market conditions warrant.  The MAP premium for May through December 2014 in Vermont, Maine, New Hampshire, Rhode Island, Connecticut and Massachusetts is $1.00/cwt.*
*Note:  The MAP will be reviewed by the Board of Directors on a monthly basis and will depend on the financial performance of the Cooperative.

NEW ENGLAND PREMIUM:
A premium of $3.50/cwt will be paid to Vermont, Maine, New Hampshire, Rhode Island, Connecticut and Massachusetts farmers.

SEASONAL PAY PRICE PREMIUM/DEDUCT:

  1. The cooperative’s pay price plans incorporates a scheduled seasonal pay price premium/deduct to provide an incentive for level production, as determined by Dairy Executive Committee policy and Board of Directors directive.
  2. A $3.00/cwt. increase for all milk that is received in January, February and December 2014; a $1.00/cwt. deduct will be applied for the months of May, June and July to offset the coop’s financial burden of spring flush utilization, transportation and inventory allowance.

CROPP Quality Program

SOMATIC CELL ADJUSTER:

  1. FMMA type formula yields $.48 cents per 100,000 on a linear premium basis. The hinge point is 350,000 with a neutral zone between 300,000-350,000. The deduction formula is $.48 per 100,000 over 350,000 on a linear basis. Maximum deduct level is at a cell count of 1,000,000. As an example, a somatic cell count of 250,000 would result in a $.48/cwt premium, while a somatic cell count of 450,000 would result in a $.48/cwt deduct.

STANDARD PLATE COUNT:

  1. CROPP has a premium/deduct program for Standard Plate Count (SPC).
SPC Quality Payment Chart
     
SPC X 1000    
1-10 $0.25 Premium
11-20 $0.10 Premium
21-30 $0.00  
31-100 ($0.10) Deduct
100+ ($0.25) Deduct

 

PRELIMINARY INCUBATION COUNT:

  1. CROPP has a premium/deduct program for Preliminary Incubation Count (PI).
PI Quality Payment Chart
     
PI X 1000    
0-15 $0.50 Premium
16-30 $0.25 Premium
31-50 $0.00  
51-100 ($0.25) Deduct
101-200 ($0.50) Deduct
201-750 ($1.00) Deduct
750+ ($2.00) Deduct

 

LAB PASTEURIZATION COUNT:

  1. CROPP has a premium/deduct program for Lab Pasteurization Count (LPC).
LPC Payment Chart
     
0-50 $0.50 Premium
51-100 $0.25 Premium
101-250 $0.00  
251-300 ($0.75) Deduct
301+ ($1.00) Deduct

 

HAULING:
There will be a $180.00 stop charge per month for CROPP producers.

DAIRY POOL CAPITAL BASE PLAN

To meet the requirements of the Dairy Pool Capital Base Plan, CROPP farmers are required to purchase preferred stock equivalent to 5.5% of their annual base gross income. Calculation of this is based on:

  1. the pay program of the Member's region
  2. the individual Member's components
  3. the Member's established production base

If you have any questions please call the Farmer Hotline at 1-888-809-9297