Stonyfield’s Milk Sourcing Initiative

Northeast Organic Dairy Pay Price Program

Stonyfield’s Milk Sourcing Initiative is a long term program focused on creating value for both the producer and processor. Launched in 2014 as part of an effort to grow and strengthen organic dairy in the Northeast, our focus is primarily on working with three types of farmers: (i) new farmers wanting to realize their dream of running a dairy farm; (ii) transitioning conventional farmers; and (iii) existing organic farmers that want to grow their herd or seek to transfer their farm on to the next generation.

Minimum Qualification Standards
We are currently taking inquiries from producers interested in organic dairying in Maine, New Hampshire, Vermont, New York (primarily eastern), and Massachusetts to create efficient hauling routes into our plant in Londonderry, New Hampshire. We will weigh all inquiries against our business priorities with respect to geographic location, milk quality, and fit with our initiative’s key areas of focus.

Base Pay Price: $30.86/cwt
Base Pay Price is comprised of Component Pricing, Organic Premium, and Technical Assistance Program.

$14.31 Component Pricing based on 3.5% Butterfat, 3.05% Protein, 5.65% Other Solids
$13.30 Organic Premium
$3.25 Year 1 Technical Assistance Program (up to $3.50 in Year 2 and beyond)
$30.86 per cwt

Component Pricing
Component prices will be as follows:

Butterfat: $1.70 per pound
Protein: $2.00 per pound
Other Solids: $0.40 per pound

Technical Assistance Program
A premium of up to $3.25/cwt in year 1, and $3.50/cwt in year 2 and beyond will be paid to producers successfully participating in Stonyfield’s technical assistance program (the “TA Program”). This program provides farmers access to tailored support from industry professionals to optimize and grow their business.

Cost Of Production Index Adjuster

Stonyfield will bi-annually evaluate data collected through our TA Program and external market conditions associated with farm cost of production, particularly the cost of feed. This information will be used to adjust the base pay price to be responsive to both short-term and long-term changes in cost of organic milk production.

Stonyfield Quality Program

Somatic Cell Count (SCC):
The premium formula is $0.75 per 100,000 under 300,000 on a linear basis. The hinge point is 300,000. The deduction formula is $0.50 per 100,000 over 300,000 on a linear basis. Maximum deduct level is at a cell count of 1,000,000. As an example, a somatic cell count of 200,000 would result in a $0.75/cwt premium, while a somatic cell count of 400,000 would result in a $0.50/cwt deduct.

Standard Plate Count:
Stonyfield has a premium/deduct program for Standard Plate Count (SPC).

SPC Quality Payment Chart
SPC X 1000

1-10 $0.35 Premium
11-20 $0.00
21-30 ($0.10) Deduct
31-100 ($0.25) Deduct
100+ ($0.35) Deduct

Lab Pasteurization Count:
Stonyfield has a premium/deduct program for Lab Pasteurization Count (LPC).

LPC Payment Chart

0-50 $0.75 Premium
51-100 $0.25 Premium
101-250 $0.00
251-300 ($0.75) Deduct
301+ ($1.00) Deduct

Preliminary Incubation (PI) Count:
Stonyfield’s Quality Program does not use PI as a basis for quality payments.

Hauling
There are no hauling charges for farms shipping a minimum of 1,000 lbs every other day. Qualified farms that are below 1,000 lbs every other day will be charged a pick up fee until pick-up is in excess of 1,000 lbs every other day.

Nothing contained in this explanation of Stonyfield’s Milk Sourcing Initiative is intended to amend or abrogate any existing contracts Stonyfield currently has in effect with producers. Stonyfield reserves the right to change the information set forth herein as market or other factors dictate, and will provide an update on this website. The terms hereof are not intended to constitute an offer to any producer or third party and said terms will not be effective until such time said parties enter into a written contract with Stonyfield incorporating the terms hereof and Stonyfield’s other standard terms and conditions.

Last Updated 6/24/14

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