Freshways guarantees minimum 44p/litre for July milk

Freshways has announced a guaranteed 44p/litre farmgate milk price for July and said it hoped to be in a position to pay its suppliers 45p/litre.

In a letter to suppliers, managing director Bali Nijjar said: “We do not believe that any company can sit on the sidelines anymore and be a price follower.”

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He said reaching the 45p/litre target would involve getting customers to agree to price rises and then that money would need to be with Freshways in enough time to pay its suppliers.

It will also be dependent on the cream price, which is currently about £2.55-£2.65/kg, which is not as strong as it has been.

“I hope we will be in a position to pay you 45p/litre in July. That is our target, but I stress that we might not achieve it,” he said.