17 August 2007

2 minute read

Europe

News of the significant increases – albeit no more than some producers believe all milk buyers should be announcing – came after First Milk’s 2ppl increase announcement for September 1.

That was swiftly followed by a matching increase from Robert Wiseman Dairies putting its September price to 22.22ppl.

Dairy Crest’s suppliers on both liquid and milk for cheese contracts at Davidstow and Hartington will receive a 2ppl increase from September 1, with those on liquid milk contracts receiving a further 3.5ppl from October 1. Suppliers on milk for cheese contracts will also receive more again, from October, the amount depends upon the size of further cheese price increases.

The company says the moves reflect the recent strength of dairy markets. “The recent leap in commodity prices represents both an opportunity and a threat for the dairy industry in the UK, as animal feed prices are also set to rise over the coming months,” said milk purchasing director Arthur Reeves.

“A sustainable dairy industry is in the long term interest of consumers, customers, processors and suppliers alike and these price increases will help achieve this.

“We have worked with our customers to achieve 25ppl for liquid milk from October. Although cheese prices have been slower to rise we are confident of being able to materially lift our milk for cheese prices further from October,” he said.

Meadow Foods said it was also looking to recruit producers. The Cheshire-based dairy, currently paying 20.1ppl, believes the latest rise will constitute the biggest single milk increase ever received.

Meadow Quality currently handles 180 million litres from its own suppliers and 120 million litres through third party contracts, supplying some UK food manufacturing companies.

Managing director Paul Deakin said they wanted at least another 100 million litres and had had enquiries in excess of that.

Source: Farmers Guardian