You are viewing 1 of your 2 free articles

You’ll need to join us by becoming a member to gain more access.
Already a Member?

Login Join us now

Dairy Farmer magazine's February 2016 digital edition


Don’t miss this month’s new look Dairy Farmer. Take a look at the digital edition today.

Twitter Facebook

A word from the Editor


The industry is in crisis as producers – particularly the non-aligned – take a thrashing as they struggle to make a margin.


But to rub salt into their wounds, we now hear that Tesco is to take 200 million litres off Arla and hand it over to Muller. So what, you may say?


Well, if true, and we have yet to have it verified, it will mean Arla has to move that 200m litres into disast-rously priced markets and it’s likely Muller’s non-aligned producers could be caught up in it all.


That’s because history shows that when milk volume changes hands from one processor to another, the deal has rarely, if ever, been done at a higher price. Of course, we do not know, and probably never will, the details of this alleged deal, but with Tesco’s margins under the pressure they are, it would be astonishing if they had paid more.


Which is what you would expect as the one thing the startling Groceries Code Adjudicator revelations do is show Tesco has been literally doing everything it can to rebuild its margins.


But with its TSDG price firmly shackled to the cost of production formula, it is restricted in its options. One way, however, would be to reduce its dairy costs by cutting its processing fee to Arla and Muller. If this is the case, then it will be the poorer non-aligned producers
who will cop it as they will likely end up subsidising the TSDG price.


Now our analysis may be wrong as Tesco claims it has changed, but when it comes to ethics the GCA has sadly shown Tesco’s record is not that good!


Peter Hollinshead, Dairy Farmer editor

Twitter Facebook
Rating (0 vote/s)
Post a Comment
To see comments and join in the conversation please log in.

More Insights

Promoting Scotland's small-scalers

Smallholders in Scotland are soon to have their own representative organisation. Rosemary Champion, one of the 12 trustees behind the move, believes the new body will be unique in the UK in terms of its remit. Ewan Pate

Showring promotion key to safeguarding rare breed

With only 417 Middle White pigs registered last year, the commitment of breed enthusiasts has never been more vital.

Red Polls revive a traditional cheese

Stepping away from the commodity dairy market, Alan and Jane Hewson resurrected a traditional regional cheese to create their own niche market. Aly Balsom finds out more.

Dairy Farmer magazine's April 2017 digital edition

Don’t miss this month’s new look Dairy Farmer. Take a look at the digital edition today.

Keeping your brood happy and healthy

Having a few chickens scrabbling around the farm garden producing a daily stream of fresh eggs is any good lifer’s dream.
FG Insight and FGInsight.com are trademarks of Briefing Media Ltd.
Farmers Guardian and FarmersGuardian.com are trademarks of Farmers Guardian Ltd, a subsidiary of Briefing Media Ltd.
All material published on FGInsight.com and FarmersGuardian.com is copyrighted © 2016 by Briefing Media Limited. All rights reserved.
RSS news feeds