Dairy producers in dark over prices of milk cheques despite retail price rises
MANY DAIRY farmers still do not know how much they will receive for their March milk, despite most shoppers having paid more at the tills for at least a week.
Morrisons and Sainsbury’s were quick to follow the lead set by Tesco and Asda last week by increasing fresh milk prices by 2p/pint, the equivalent of 3.5p/litre. And many middle ground sellers have also moved.
However, Robert Wiseman Dairies is the only processor so far to talk about specific rises.
In a letter to farmers, milk procurement director Pete Nicholson said: “We believe it might be possible for us to agree a 1.5p/litre addition to your base price from April 1, subject to market developments.”
March prices would also increase, but the exact amount would be announced at the end of the month, the letter continued.
Jonathan Ovens, chairman of the Arla Foods Milk Partnership, said he could not quote an exact figure, but was confident there was already “a penny in the bag” with a further top-up likely in April. All of the group”s members would probably get the same increase, he added.
Dairy Crest Direct chairman Brian Barnett said nearly all of Dairy Crest’s liquid customers had agreed to put up prices. But the phased loss of its Tesco contract during April would limit potential price rises and any increases would probably not be included in March milk cheques.
David Handley of Farmers for Action said he was pleased with the moves made by Wiseman and Arla. but very disappointed that the co-ops had yet to announce price rises.
A spokesman for First Milk said: “We have seen movement from our liquid customers, which is positive news for our members. But, as we have stressed all along, this sector accounts for, at best, 40% of our total business.
“Our members’ March price will increase, but we will not know by how much until the end of the month at the earliest.”
Dairy Farmers of Britain said: “We will be in a position to confirm March milk prices to our members in the next few days and will pass extra returns to our members as soon as we can.”
Will Sanderson, corporate affairs manager at Milk Link, said: “This round of announcements doesn’t mean we have more money coming into the business.”
But Mr Handley said he was running out of patience with the co-ops. “We”ve listened to that bullshit for three months; they”ve got to pull their finger out. Board members need to be told their time is running out.”
Gywn Jones, NFU dairy chairman said he was prepared to give the co-ops more time – but not much. “I understand their difficulties but we can”t wait for ever.”
In a worst-case scenario, Mr Bessey said liquid milk sold in supermarkets might be worth 22p/litre while those solely supplying commodity markets might get little over 16p/litre.