Welcome boost on prices for Cumbrian milk producers
Last updated at 14:39, Friday, 07 December 2012
Hundreds more Cumbrian dairy farmers are to get an increase on the price they are paid for milk.
First Milk – owners of Aspatria’s creamery – announced a payments hike for its farmer suppliers last week.
Now Meadow Foods, which has about 200 Cumbrian producers on its books, is to give farmers an extra 1p per litre from January – taking its standard litre price to 30ppl.
Executive chairman Simon Chantler said: “We are pleased to be able to increase our milk price.
“The new price reflects the overall increase the company has received back from the market, allowing us to pass on the benefits directly to our own milk producers in a simple straight forward way so all producers benefit.”
Meadow Foods currently handles more than 500 million litres of milk-a-year, sourced from more than 530 dairy farmers from across the north west, Midlands and Wales. The firm says the wet summer, resulting on low forage stocks on farms and record high bought-in feed prices, has had a negative impact on mill volumes, creating a “challenging environment” it predicts will continue into next year.. Mr Chantler added: “We appreciate that milk production is tough at the moment but we will continue to listen to our farmers and push our customers for further increases to ensure supply.”
The price rises could be seen as a step towards easing financial pressure on dairy farmers after payment cuts from a string of dairies that battered incomes and triggered a summer of discontent during which some threatened to pour milk away rather than accept payments well short of production costs.
Producers in First Milk’s liquid, cheese and balancing pools have – or are poised to – receive a 0.5 pence per litre rise. Such have been the financial problems faced by dairy farmers in recent months that some have been selling their cows, rather than take a milk price that is lower than the cost of production. A Dairy Industry Voluntary Code of Best Practice on Contractual Relationships – outlining a detailed pricing structure and stating that producers must be given 30 days notice of any fall in price from processors – is now in play.
First published at 14:17, Friday, 07 December 2012
Published by http://www.cumberlandnews.co.uk
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