Cheese-maker cuts milk price

15 February 2002




Cheese-maker cuts milk price

SOMERSET cheese-maker Wyke Farms has cut its ex-farm milk price by almost 1.5p/litre from Feb 1 to combat falling returns from non-premium cheddar production.

It has revised its constituent prices, and is now paying 1.764p for each butterfat % (down from 1.918p) and 3.027p per protein %.

This takes farmers weeklys standard litre price (4.1% fat, 3.3% protein, top hygiene bands and 1101 litres a day) to 18.29p/litre, after transport charges and assuming extended loyalty bonus and a quality bonus. Bonuses for larger and every-other-day collections remain unchanged.

Richard Clothier, production director, blamed tighter margins on mild and medium Cheddar.

The adverse £/k exchange rate is sucking in large quantities of product, mainly from Ireland. In-store promotions of New World mature Cheddar are also taking premium UK business, he added. &#42


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