Cornish producers needed to supply milk for clotted cream

Cornish clotted cream producer Rodda’s is offering producers direct supply contracts for about 50m litres of milk a year.

This must come from Cornish farms within a 30-mile radius of its plant near Redruth and will reward high butterfat and hygiene levels, said the company.

Farmer presentations were made this week to those in the area and the firm wants the first 25m litres to be signed up by 11 March.

It is aiming for 50% of supply to begin between February 2017 and July 2017, allowing time for producers to serve notice on existing contracts.

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Rodda’s is the county’s second largest processor of milk and has been in business for 125 years.

The firm said it wanted to strengthen its links with the local farming community and was looking to give long-term security to both parties by buying direct.

Farmers Weekly asked the company’s managing director Nicholas Rodda about the new contract:

How does Rodda’s buy its milk now?

Currently we have a producer group of Cornish farmers who have a contract with Arla- these farmers then sell-on the required milk to Rodda’s.

When will the new contract become effective?

We will have phased volumes. We will be taking 5 % of our direct supply milk between February 2017 and July 2017, a further 25% by October and 100% direct supply by February 2018.

Will the 50m litres represent Rodda’s total annual supply?

Yes, this will satisfy our current milk demand.

How many direct suppliers does Rodda’s want to deal with?

We are looking for a variety of herd sizes. What is important is great business fit. We are anticipating offering contracts to 30-60 Cornish famers.

What constituent values and quality requirements does Rodda’s have under the new contract?

Our payment schedule has been designed to reward the high butterfat that we know is already present in our current milk field.

We are therefore rewarding more on butterfat than protein, bactoscan at 30,000 cells/ml and somatic cell counts at 250,000 cells/ml – the bonuses for both of the latter will be graduated.

This schedule will provide us with the perfect properties for the making of Cornish clotted cream.

What other requirements are there?

The main criteria for us will be a good business fit, with excellent milk quality, high butterfat, and excellent herd husbandry.

How will the milk be priced?

Our starting price will be based on a standard litre price, which is the higher of the two major buyers in the county, Dairy Crest Davidstow and Arla (owners).

Rodda’s premiums then augment this price to 24.541p/litre.

Further bonuses are available based on fat, protein, bactoscan and cell counts. In order to ensure more stable pricing we have a basket mechanism for the movement of the milk price after this.

When will farmers be paid for their milk?

We will be paying our farmers fortnightly. If preferred, farmers will be able to opt for monthly payments instead.

Milk delivered between first and 15th will be paid for as a standard litre, by the end of that month.

Milk delivered between 16th and the last day of the month, plus any adjustments, will be paid on the 17th of the following month.

In terms of the decision to secure milk supply through direct contracts, how big a consideration is/was the decline in local milk producer numbers and the need to secure a long-term milk supply?

As a fifth generation family business, long-term milk supply is vital.

Our drive to further strengthen our links with Cornish farmers, and to purchase milk with the perfect properties for making Cornish clotted cream, were key drivers in our decision-making process.

Known around the world for its clotted cream, Rodda’s also produces other dairy goods including butter, crème fraîche, milk and fudge.

Protected Designation of Origin status was achieved for Cornish clotted cream in 1998 – this is an award by the European Commission, designed to protect traditional, regional foods against imitation.