Affected suppliers have been given a 12-month notice period as the dairy looks to make its producer base ‘manageable, sustainable and fit for the future’.
Meadow Foods has confirmed it will reduce its supplier base, following a review of operations in response to ‘increasing commercial pressures and a desire to improve efficiencies’.
Following the review, the dairy has served notice to a small number of its producers. It was understood this would make up around 3.5 per cent of its total milk volume.
Mark Chantler, chief executive of Meadow Foods, said: “We have reviewed all areas of our operation and realigned our producer base to ensure it is manageable, sustainable and fit for the future.
“The outcome from this review has identified a number of producers who unfortunately do not fit in with our current or future milk procurement strategy.
“After much consideration, we announce with regret that we have served notice to those producers identified.”
The suppliers have been given a 12-month notice period during which Meadow Foods said it would be working closely with them to help secure other purchasers for their future milk supply.
The last collection date will be June 30, 2020. However, should the supplier find an alternative buyer suppliers were welcome to leave sooner if they wished.
As April 1 2020 would be a new milk year, Meadow Foods would pay B litre prices for the final three months of the contract.
It was part of a range of efficiency focused actions taken by the company across all areas of operations and a ‘desire to have the most sustainable and efficient milk supply in the industry’.