Meadow Foods, the UK’s leading independent dairy group, has signed 35 former Farmright producers on direct supply contracts.
The farms have a combined milk pool of over 40m litres,which have been purchased indirectly by Meadow through a contract with Farmright for the last two years.
The switch to direct contracts between Meadow and thefarmers, which are all based in the Staffordshire and Derbyshire areas, further strengthens Meadow Foods existing milk fields in the area.
Meadow has committed to match the terms of the transferring producers’ former contracts with Farmright.
Jim Bebb, Meadow Foods’ head of milk procurement said: “This agreement is mutually beneficial for us and the transferring producers. We areactively recruiting new producers to meet increasing demand from our customersand we’re pleased to be able to offer secure and long-term purchase agreementsto the farms that have signed up with Meadow.
“We have also made short term payment arrangements to assist producers with their cash flow going forward.”
Meadow Foods is the UK’s leading independent dairy group,purchases more than 450m litres of milk annually from more than 550 farmers primarily in Cumbria, Cheshire, Lancashire and North Wales.
The company, which has annual sales of more than £300m, hasthree UK dairy processing sites in Chester, Holme upon Spalding Moor inYorkshire and Peterborough, producing dairy ingredients including butter, cream, chocolate crumb and cultured yoghurt for use by food manufacturers.