By Farmers Weekly staff
DAIRY farmers could boost profits by 9ppl by selling milk direct to consumers at supermarket prices.
That is the claim of Dairies Direct, a company launched at last weeks European Dairy Farming Event, offering franchises to producers to sell liquid milk direct to the end user.
“Farmers are currently receiving 9p/pint, but could generate 22-25p/pint by selling fresh milk direct,” says managing director and former dairy farmer David Kaye.
After 8p/pint processing costs, including finance, that leaves extra profits of 5p/pint or 9ppl.
Over 1000 litres a day, that is equivalent to 80,000/year, he says.
Mr Kay claims start up and running charges will be 10% lower as part of the franchise, which will cost 500 to join and 0.25ppl thereafter.