Direct sales for dairy profit boost?

By Farmers Weekly staff

DAIRY farmers could boost profits by 9ppl by selling milk direct to consumers at supermarket prices.

That is the claim of Dairies Direct, a company launched at last weeks European Dairy Farming Event, offering franchises to producers to sell liquid milk direct to the end user.

“Farmers are currently receiving 9p/pint, but could generate 22-25p/pint by selling fresh milk direct,” says managing director and former dairy farmer David Kaye.

After 8p/pint processing costs, including finance, that leaves extra profits of 5p/pint or 9ppl.

Over 1000 litres a day, that is equivalent to 80,000/year, he says.

Mr Kay claims start up and running charges will be 10% lower as part of the franchise, which will cost 500 to join and 0.25ppl thereafter.