Processing trio act
Processing trio act
By Philip Clarke
THE collapse in dairy farmer incomes continues, with three of the countrys largest processors announcing price drops in recent days.
Unigate, which is engaged in a complete overhaul of its pricing structure (Business, Mar 28), has issued a new standard litre price of 20.3p from Nov 1, (based on 4.1% butterfat and 3.3% protein). This is just 0.3p/litre more than Milk Marque and represents a drop of 2.5p/litre from the companys previous base price.
"But up to 2.4p/litre extra will be available in bonuses, giving producers an extended range of opportunities to increase their returns," says head of agriculture affairs, Brian Pocock.
The new price is made up of a 10.068p/litre flat rate payment for all supplies. Milk solids will then be paid for at a rate of 1.08p a % for butterfat and 1.76p a % for protein – worth 10.236p for the standard litre.
The bonuses include another 0.6p/litre for top milk hygiene and 0.5p/litre for achieving a more level supply profile. Up to 0.5p/litre will be paid to groups (subject to negotiation), with another 0.6p/litre available for high levels of husbandry as set out in Unigates new Superior Stockmanship programme.
Farmers meeting these standards consistently over a year will get another 0.2p/litre as Sovereign Suppliers. But severe penalties will apply for those who fall short of quality requirements. Haulage deductions will also apply.
Greater attention to quality is also a feature of the new Northern Milk Partnership payment scale, though changes here are far less radical than Unigates.
The basic NMP price is coming down by 1.8p/litre, for producers in the top hygiene bands. With butterfat at 1.84p a % and protein at 3.555p a %, the base price will drop from 21.5p to 19.1p. But another 0.6p/litre is being added to quality payments, taking the bonus for Bactoscans of 30,000 or less to 0.8p/litre, and for cell counts below 180,000 to 0.6p/litre. Including a volume bonus of 0.2p, the new NMP standard litre will be worth 20.7p/litre, with no haulage charges.
The new prices will prevail for as long as the market justifies it, says Northern Foods dairy executive, Peter Walker.
Robert Wiseman Dairies has also announced another milk price cut, taking 1p/litre off producers from Nov 1, compounding the 1p/litre drop imposed from Oct 1.
This takes the standard litre price to 21p/litre for farmers supplying the Manchester dairy, after allowing for unchanged hygiene bonuses of 0.5p/litre for TBC below 15,000 and 0.5p/litre for cell counts below 180,000.
Suppliers to Wiseman Scotland will be getting an equivalent payment of 20.64p/litre for a 4.1% butterfat, 3.3% protein litre, fixed for the next six months.