Milk Supply Handbook
Milk Supply Handbook 2018/2019
This handbook outlines details of the milk payment structure and milk quality and collection policies effective from 1 July 2018.
MILK PRICES & PAYMENT OPTIONS
A choice of two pricing options - the highest paying option guaranteed
WCB has two pricing options that allow suppliers to pursue the payment structure most suited to their farm business.
1. Seasonal Supply Option
The seasonal supply option provides strong milk prices and cashflows for farmers with a more traditional milk production and calving pattern. This option may suit farmers with a majority of spring milk production.
2. Flat Supply Option
The flat supply option recognises the commitment and value of milk supplied to WCB out of season. The flat supply option includes a flat supply incentive in the February to July period to qualifying farmers. This option may suit suppliers with relatively flat production across the year.
Suppliers nominate their preferred system at the start of the year, BUT if at the end of the financial year, the other system proves higher, WCB will pay the difference!
So suppliers are guaranteed to end up with the highest paying option.
Cashflow a priority
WCB is committed to delivering earnings and cashflow straight into their suppliers' pockets.
All incentives are paid in the months that they are earned. Where incentives are dependent on annual production, an up-front incentive amount is paid each month, based on the farm's production history for the previous two years, with an adjustment made at the end of the financial year.
Suppliers can also opt to receive their milk income as a flat monthly price throughout the year. Contact a Field Officer to see how our Flat Cashflow Option can benefit your business.
MILK SUPPLY BENEFITS & OPTIONS
As a WCB supplier, there are a number of services and options available including:
- Comprehensive Field Service Support
WCB have an experienced Field Service team capable of supporting you and your business. Along with regular ‘on-farm’ contact, the team can provide advice on all aspects of farm management, dairy employment, share farming and leasing, as well as maintaining milk quality.
- Choice of milk payment: 10 Days or Monthly
Would having your milk paid for every ten days help you save interest on your overdraft or farm loans? Would it help you to receive discounts on farm inputs such as grain?
WCB offers farmers the choice of a traditional monthly milk cheque, or if you prefer, ten-day payments instead. No extra paperwork or costs are involved, still only one month end invoice and statement, but more frequent installments to your bank account.
- Interest-free fodder and fertiliser advances
WCB suppliers are able to obtain interest-free cash advances for the purchase of fodder or fertiliser. This allows suppliers to secure these inputs when they want them, without extra stress to their cashflow in low production months, or attracting interest charges.
Fodder/Fertiliser advances are available, year round, to the value of $125 per cow. Repayment schedules are flexible, up to a period of 12 months from the date of the advance. Once an advance is repaid in full, the supplier has the opportunity to use the facility again.
The application process is quick and simple, and available through Field Services. WCB Field Officers can also provide information about hay sources, ration formulations, feed and fertiliser budgeting. We take the hassle out of payment by paying the contractor/seller direct.
- Choice of a separate GST account
To assist with quarterly business activity sheet (BAS) payments, suppliers can opt to have the GST component of their proceeds paid into a separate account.
- Milk Vat and Cooling System Interest Rebate Scheme (MCR)
The MCR program is to assist suppliers purchasing larger vats, to meet volume requirements and avoid twice daily collections, or installing milk cooling upgrades that can supply milk into the vat at 5⁰C. This will create savings for the suppliers as well as the Company. WCB will provide a 30% rebate on the net purchase and installation costs of vats or milk cooling infrastructure that meet the MCR guidelines.
- Milk testing assistance
WCB provides suppliers with the opportunity to run extra milk tests on vat or cow samples for BMCC and antibiotics, separate to milk collection, at no cost or penalty.
- Secure, authorised access to supply database (ResultsPlus)
In addition to the general company website, suppliers can log into a dedicated supplier site called 'ResultsPlus'. This protected site provides suppliers with authorised access to their milk production results and information specific to their milk supply.