21 July 1995

Nestlé milk bonus for English but not Scots and N Irish

By Shelley Wright

DAIRY farmers on contract to Nestlés Dalston and Ashbourne factories will receive an average bonus of 0.7p/litre on the milk they supplied between November 1994 and March 1995.

But producers who sell to the companys Girvan and Omagh plants, in Scotland and Northern Ireland respectively, will not get any similar top up.

John Ross, Nestlés head of milk purchasing, explained that the company had always paid factory-specific prices based on local conditions. He admitted that the bonus for the two English factories was influenced by Milk Marques announcement last month of a similar 0.7p/litre "sixth" payment.

"The price our Dalston and Ashbourne producers received was competitive with Milk Marque. When they announced their retrospective payment then we wanted to maintain our competitive advantage, hence this bonus," he said.

Different adjustments

Mr Ross added that both Girvan and Omagh had already paid higher base prices and used different seasonality adjustments to ensure their producers of better returns during the five-month period.

The exact bonus for Ashbourne and Dalston producers will depend on the compositional quality of the milk they supplied. The payment of 0.0778p per 1% fat, and 0.1185p per 1% protein will be worth 0.7p/litre for the average Nestlé producer with milk of 4.05% fat and 3.25% protein. The bonus will be paid in the July milk cheque, due on farms on Aug 15.