Market Value Pricing Program

Saputo offers dairy producers additional premiums for their milk based on quality, composition and volume.

If water, cleaners or antibiotics have accidentally been added to your milk, consult your field representative for instructions to handle this type of situation.

Qualifications for Quality Premiums

Average of all SCC tests a month
Average of 2 standard plate counts per month

  1. Cryoscope: -.535 or lower.
  2. Must have #1 or #2 sediment.

Somatic Cell Count Premiums*

SCC RangeSCC Adjuster*
0 - 100 $ 0.0030
101 - 200 $ 0.0025
201 - 350 $ 0.0020
351 - 400 $ 0.0000
401 - 500 $-0.0010
501 - 600 $-0.0013
601 - 700 $-0.0015
701 - 750 $-0.0020
Over 750 $-0.0025

SCC premiums will be paid on a price per pound of protein.

Example:

Your average monthly SCC is 150 and your average protein is 3.05%

Calculation

(350 - Ave SCC of 150) *rate from table / 3.0 = .167 protein lb

.167 per protein lb x Farm Protein of 3.05 = $.509/cwt

Plate Count (Bacteria) Premium*

PLC RangesRate/lb Protein*
0 - 25 $ 0.0200
26 - 50 $ 0.0000
50+ $ -0.0200

Bacteria premiums will be paid on a price per pound of protein

Example:

Your average monthly plate count is 10 and your average protein is 3.05%

Calculation

$.02/lb x 3.05 = $.061/cwt

Hauling Program *

Option A: Contracted Hauler

Cheese Solids Pick Up Premium

Per Pickup
Cheese Solids Pounds

Cheese Solids
Adjuster

Per Pickup
Cheese Solids Pounds

Cheese Solids
Adjuster
0 - 279 0.0000 940-999 0.0408
280 - 339 0.0034 1000 - 1059 0.0442
340 - 399 0.0068 1060 - 1119 0.0476
400 - 459 0.0102 1120 - 1179 0.0510
460 - 519 0.0136 1180 - 1239 0.0544
520 - 579 0.0170 1240 - 1299 0.0578
580 - 639 0.0204 1300 - 1359 0.0612
640 - 699 0.0238 1360 - 1419 0.0646
700 - 759 0.0272 1420 - 1479 0.0680
760 - 819 0.0306 1480 - 1539 0.0714
820 - 879 0.0340 1540 and up 0.0748
880 - 939 0.0374

Average cheese solids premiums will be paid on a Volume Adjuster times the combination of butterfat and protein lbs.

Example:

Your average BF is 3.6%, PRO 3.1% and you ship 200,000 lbs of milk, with 30 pickups.

  • 3.6% + 3.1% = 6.7% CS
  • Take 6.7% x 200,000 = 13,4000
  • 13,400lbs/30 pickups = 447 lbs
  • 447 of CS per pickup = $0.0102/lb CS
  • $0.0102 x 6.7 = $.068/cwt

$6.00 per pickup + $.05/cwt.
Additional stops over Every Day Pickup will be charged $15 per stop.

Option B: FOB - Freight on Board (FOB) delivered to designated plant

Qualifications - Producer must have 25,000 lbs or more per pickup

  1. Hauling rate to be negotiated by producer with hauler
  2. $.90/cwt premium
  3. No cheese solids per pickup premium. No stop charges.


*The MVP Formula, Adjusters and Premiums are subject to change based upon market conditions.