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 (which is not tied to the conventional marketplace) has varied from $1.50-$14.00/cwt over our 25 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.
Base Component Price: $30.05/cwt.
($25.55 plus $3.50 Regional Premium and $1.00 National Premium)
Based on component levels of 3.5% Butterfat; 3.05% Protein; 5.65% Other Solids
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|
NEW ENGLAND PREMIUM:
In addition to above component pricing, a premium of $3.50 per cwt, will be paid to Vermont, Maine, New Hampshire, Rhode Island, Connecticut and Massachusetts farmers as a regional premium.
The Cooperative works hard to achieve a sustainable stable pay program for farmers. The National Premium and Regional Premium payment is above the standard pay program.
CROPP Quality Program
SOMATIC CELL ADJUSTER:
- FMMA type formula yields $.48 cents per 100,000 on a linear premium basis. The hinge point is 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:
- CROPP has a premium/deduct program for Standard Plate Count (SPC).
|SPC Quality Payment Chart|
|SPC X 1000|
PRELIMINARY INCUBATION COUNT:
- CROPP has a premium/deduct program for Preliminary Incubation Count (PI).
|PI Quality Payment Chart|
|PI X 1000|
LAB PASTEURIZATION COUNT:
- CROPP has a premium/deduct program for Lab Pasteurization Count (LPC).
|LPC Payment Chart|
There will be a $180.00 stop charge per month for CROPP producers.
SEASONAL PAY PRICE PREMIUM/DEDUCT
- 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.
- 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 co-op’s financial burden of spring flush utilization, transportation and inventory allowance.
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:
- the pay program of the Member's region
- the individual Member's components
- the Member's established production base
Please see our Equity handout to learn details of options for fulfilling this requirement.
If you have any questions please call the Farmer Hotline at 1-888-809-9297