Milk Price Review March 1998

Milk Price Review:
Dairy companies match competitors litre for litre

Tuesday, March 10, 1998

By Philip Clarke

DAIRY companies are adjusting their prices in a manoeuvre to keep in line with their competitors, according to this months Milk Price Review, monitoring February milk cheques for January payments.

MD Foods (ranked 7th in our table below) has changed its payment structure, with a flat 5.5p/litre fixed price, plus reduced constituent values of 2.2p per % of butterfat and 1.18p per % of protein. Top-band hygiene payments have been increased to 0.8p/litre.

Midlands Co-op (ranked 2nd) has cut its base price from 21.3p/litre to 20.295p.

But Nestlé (16th) at Girvan, Scotland, has increased constituent values for the second month running, taking butterfat to 2.247p a % and protein to 3.619 a % for January deliveries.

January price rises were introduced to offset the increase in transport “stop” charges to £8 introduced for December deliveries at Ashbourne, Dalston and Girvan to encourage every-other-day delivery.

The stop charge has been capped at 1.5p/litre for daily collection, half that for EODC, to protect smaller producers.

February 1998 for January deliveries (updated monthly)

adj (ppl)
litre (ppl)
Av price
Apr-Jan 97
Southern Co-op1111.9311.41-0.8022.6423.59
Midlands Co-op220.000.000.0021.8823.62
Golden Vale339.3510.530.0021.3922.54
Wiseman England460.900.100.0021.0022.50
The Milk Group579.3511.280.0020.9322.03
Lancashire Dairies690.000.000.0020.9022.57
MD Foods749.023.840.0020.7622.43
The Cheese Co. Scotland8107.7511.731.2020.7521.33
Unigate – EODC9114.435.72-1.0020.6822.50
Wiseman Scotland10121.360.280.0020.6422.29
Woodgate Farms1150.000.00-1.0020.5023.25
Waterford (“PSL” contract)12130.000.090.0020.3822.63
South Caernarvon13148.5611.77-0.5020.2321.56
Northern Foods14177.5411.55-0.5020.2022.25
Wyke Farms15158.2811.050.0020.1721.42
Nestlé Scotland1689.2111.760.0020.1521.62
Aberdeen Milk17160.600.250.0020.0320.64
ACC (Stockton)19197.8110.44-0.7019.8522.01
Milk Marque – EODC21218.4911.340.0019.7020.95
Scottish Milk22228.3211.380.0019.6420.88
Milk Marque23248.4911.340.0019.2020.45
Nestlé England (Dalston)24238.8611.60-0.5019.1321.76

Wye College
University of London

  • Price per standard litre is after transport and marketing charges, assuming daily collection of milk, 4.1% butterfat, 3.25% protein, 1101 litres/day, TBC below 20,000 and cell count below 250,000
  • For The Cheese Co. Scotland, Avonmore and MD Foods, figures include minimum group bonus paid to over 95% of farmers
  • For Unigate – EODC, the price includes “6 keys”; top “general compliance” score; top “farm inspection” score; 0.3ppl group bonus; “sovereign supplier” bonus; group term bonus; and milk collected every other day

  • Click here for earlier Milk Price Reviews

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