3 December 2009

1 minute read

Europe

The new contracts which will commence from 2010, are aimed at driving efficiencies and adding value through the supply chain.

The changes come after an in depth review of the way the company buys its milk. As a result of feedback from meetings held across the country, Dairy Crest has reviewed the terms under which milk for liquid and manufacturing markets is currently supplied - these include quality, collection volume, supply profile and contract notice periods.

Mark Taylor, Dairy Crest's Milk Procurement Director, said that the new contracts reflect the large and diverse group of Dairy Crest suppliers.

For non-aligned suppliers, two new contracts have been announced. The first is a doorstep initiative, 'milk&more', which offers a two-year contract with a fixed base price of 24.5ppl. Available to all non-aligned liquid suppliers this new contract aims to offer greater price stability.

The second contract, 'Farm Business Contract', will offer larger suppliers a simpler contract and pricing structure. Dairy Crest believes the terms will allow both parties to share in the efficiencies achieved through large scale sourcing and transport arrangements and a level supply profile.

Mr Taylor said: "The changes outlined have the potential to deliver significant benefits to suppliers and are very much the first steps in what he considers an evolutionary, rather than revolutionary, process."

TheCattleSite News Desk