Marks & Spencer’s dedicated milk suppliers will be paid 33.58p/standard litre from today (1 February).
This represents a 1.322p/litre increase for the 40 or so producers in the group. The price is based on feed, fertiliser and fuel price indices and is linked to the M&S retail price.
M&S buys its milk through Dairy Crest and has used its milk pledge+ pricing model for more than 12 years.
The model tracks prices, reduces uncertainty and was of significant benefit to the farmers involved, said M&S national milk pool chairman Mark Robins, who manages the 200-cow Farley Farms’ herd in Berkshire.
Although the increase is only for a small number of producers, it puts M&S at the top of the price league table. “I hope it will stimulate the rest of the market,” said Mr Robins.
“The model delivers a stable milk price for six months, but the indices are reviewed monthly and reported to the milk pool so there are no surprises. This latest change reflects the significant increase in feed prices that have occurred during the past six months.”