2 May 2001
2ppl rise for direct Express suppliers

By FWi staff

FARMERS who send milk direct to Express Dairies have secured a potential 2ppl price rise backdated to 01 April, after weeks of wrangling with the company.

An average member will now receive 20.4ppl, claims Richard Smith, chairman of the Express Milk Partnership.

The increase consists of a 1.5ppl increase in flat rate payment, to all suppliers, and a 0.3p bonus to EMP members.

Farmers who adopt Expresss new flatter seasonality payments will also receive an extra 0.2ppl over the milk year.

Express, thought to be offering 1.5ppl, eventually gave in to producer pressure.

“We said we wanted a minimum of 20ppl two months ago, and we have actually got more than that,” says Mr Smith. “We got our 2p in a way.”

He believes both sides will win, since the deal is likely to stop the recent haemorrhaging of direct suppliers to co-ops.

Earlier this week Express announced that it was abandoned a final dividend, cutting its payout to shareholders by 60% in the year.

The group cited uncertainties over raw milk production from food-and-mouth and wet weather in announcing its cut to 3.38p from 8.48p last time.

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