The cold and generally wet spring has played havoc with milk pricing seasonality schemes introduced by processors in a bid to reduce the spring milk flush and incentivise autumn production.
Experts said Robert Wiseman Dairies, in particular, had been caught out, with far more premiums being paid out in the trough period than penalties collected during the peak. Seasonality schemes are designed to be financially self-balancing, but clearly more farmers than envisaged had altered their milk supply pattern.
Rectifying the imbalance means the company has been forced to cut its seasonality bonus by 0.2ppl for two months. A further review will take place in the summer.