Milk price drop for Meadow Foods producers

The cut means Meadow Foods’ 650 UK dairy farmers will receive 26p/litre for milk with constituent contents of 4% butterfat and 3.3% protein.

Manufacturing litres of 4.2% butterfat and 3.4% protein will also be hit by a 1.75p/litre drop, meaning producers in the Chester pool will receive 26.37p/litre and 26.25p/litre going to producers in Cumbria from next month.

The last confirmed Meadow B price was paid on January 2018 litres at 21.25p/litre paid above individual’s base volumes.

The cut is now Meadow Foods’ fourth in a row, seeing its farmgate price fall by 5p/litre in 2018 – a drop of 16%.

The processor blamed decreases in value of milk fats and skimmed milk powder, as well as an increase in UK milk production.

“We understand producers will be frustrated with this reduction, but this movement reflects weakening prices in the UK, which have also been reflected by other processors in their latest price announcements,” said Meadow Foods chief executive Mark Chantler.

“We regret this market trend and hope the price stabilises in the near term. We will continue to monitor the situation very closely.”

“We’d also like to extend our thanks for the assistance and understanding of all those affected by the severe weather over the past week. They were truly exceptional circumstances,” added Mr Chantler.

By: Jack Yates

Source: FWi


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