08 September 1998
Milk Marque agrees contracts

MILK MARQUE reached agreement to sell most of dairy farmers output in the six months from 1 October.

The announcement ends weeks of uncertainty after the co-operative cancelled its auction for the contracts in July. This followed a decision by the six large dairy companies not to put in more than token bids because they felt the indicative prices were too high.

Milk Marque says it has now agreed contacts to sell 11.3m litres of milk a day, 83% of the 13.6m litres on offer in the auction. It believes it will have no difficulty selling the remainder on short-term contracts and to contract processors.

The price is higher than that agreed in the January auction for the six months from 1 April, but lower than Julys indicative prices.

Milk Marque said the contract prices successfully reversed the downward trend in milk prices over the last two years.