FG BUY&SELL        FARMERS WEATHER       ARABLE FARMING        DAIRY FARMER      FARMERS GUARDIAN        AGRIMONEY        OUR EVENTS        MEMBERSHIP BENEFITS        BLOGS        MORE FROM US
You are here: News > Insights
Search

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 July 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

 

Muller’s acquisition of Dairy Crest’s liquid business was generally heralded as a step in the right direction on two scores.

 

Firstly, Dairy Crest had struggled for years to make a profit from its beleaguered business and something had to happen to restore margins.

 

And secondly, the incidental spin-off from contracting three processors into two was that it could help rationalise discussions when it came to the regular retailer negotiating rounds. So all seemed hunky dory.

 

Until this week, when Sainsbury’s suddenly entered the fray. They were having none of it. Its decision to award its latest milk tender to not one, not two, not three, but four processors wasn’t what Muller may have had in mind.

 

Sainsbury’s message was crystal clear: “We’re in charge here, not you.” It is not going to let one or two processors dominate and has ensured by its actions there will be plenty of competition for the big guns at Arla and Muller.

 

Although there have been tenders at other retailers lately, it is impossible to know volumes or prices as figures are kept top secret. Whatever they were, it is undeniably a disastrous time for renegotiating milk prices with retailers as with all this milk swashing around it is pretty unlikely they will have agreed higher prices.

 

Both prices and processing fees will have been under severe pressure, and any reduction is likely to be ultimately picked up by the nonaligned suppliers who have no predetermined supermarket price.

 

Muller may be making a noble attempt to rationalise the processing sector, but it has been made abundantly clear it is going to be no stroll in the park!

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

More Insights

A passion for cow families at Erie herd

Last year’s Royal Welsh Show was a career peak for Iwan Morgan and his family’s Erie herd, taking both the inter-breed champion and reserve in the dairy ring. Laura Bowyer catches up with him at home in Carmarthenshire.

New research shows the difference in profitability between bulls and steers

Margins from bull beef, back to basics for grassland management, and using rather than just gathering data were talking points at AHDB’s recent Beef Live event at Harper Adams University. Simon Wragg reports.

Showcasing homebred champions on the world stage

The pride of showing any animal is a feeling that resonates with many farmers and for equestrian couple, Jonathan Batt and Claire Parsons, it is what fuels their ambition to produce the best possible horses.

Off camera with Meinir

On or off screen, Meinir Howells is regularly spotted in sheep rings across Wales. Presenting the S4C coverage of the show, she brings all the excitement to living rooms across Wales and beyond. Laura Bowyer reports.

Popes Simmentals return after record breaking year

History was made by the Wood family and their Simmental herd last year, as they took inter-breed pair championships at both the Royal Welsh and Great Yorkshire with homebred stock. Alex Robinson went to meet the breeders
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