United invites new plant tenders
United invites new plant tenders
UNITED Milk has contacted all milk supply co-ops and processors inviting tenders to supply milk for its new butter/skim milk powder factory at Westbury for 12 or 15 months, starting from July 1.
Customers can choose from two types of contract. "The tender allows co-operatives to achieve a price based on either the market value of products made from their milk or on the intervention support system," said chief executive, Don Morris.
United Milk is in talks with several big buyers in the food chain whose products require high-grade skim milk powder, which will be an important market, he adds.
Using current commodity prices and exchange rates, Mr Morris calculates both the food market and intervention would return a price to the seller of more than 16p/litre. *
United Milks Westbury plant will soon open for business.