Meadow Foods, the UK’s leading independent dairy group, has put more positive momentum into the market by increasing its milk price by another 1.67 ppl from 1st October 2011.
This takes their Standard Litre Price in Cheshire, Shropshire, Staffordshire, Lancashire, North Wales and South Wales to 28.38ppl, and in Cumbria to 28.46ppl.
It is important to note that the Meadow Foods increase is a straightforward rise so all producers will receive it, unlike some recent rises announced by other dairy companies which are linked to achieving top levels of hygiene or producing more per month than the previous year.
The full increase has been attached to the constituent element of the payment schedule. Jim Bebb, Meadow’s Head of Milk Procurement said “At our last round of producer meetings the consensus favoured our next price rise to be on constituents, which we have taken onboard and acted on. This also means, heading into the higher composition Autumn /Winter months, most producers should receive well in excess of the 1.67ppl increase.
Jim Bebb also commented: “Our sales team will continue negotiations with our customers to ensure they are fully aware of the need for milk price increases, due to the escalating costs facing producers. Added to this, variable silage quality and the fact that some producers are still wondering whether to remain in milk or not, means we feel milk will continue to be short over the Autumn and Winter and producers need more money to encourage them to produce.”
Profile Payment Changes for October for Cumbria
In Meadow’s Cumbrian Milk Field October also sees the introduction of a new Profile Payment scheme, which was previously announced last year. Meadow has studied the supply profile over the last 18 months and can already see a flattening of milk supply, as producers adapt for the new payment scheme. Meadow says the introduction of this scheme will mean an average producer will receive a further 0.12ppl, taking the standard litre to 28.58ppl.
Meadow Foods is the UK’s leading independent dairy group, with total sales in excess of £300 million. The business supplies milk and balancing services to the premium liquid milk industry. It also has an ingredients division supplying cream, butter, sweetened condensed milk, Anhydrous Milk Fat, chocolate crumb and cultured dairy products to blue chip food manufacturers from three well-invested manufacturing sites in Chester, Peterborough and Yorkshire.
For further information contact Jim Bebb: 07919 118026