Don’t miss this month’s new look Dairy Farmer. Take a look at the digital edition today.
No-one knows what financial accommodation was reached following the spat between multinational food processor Unilever and retailing giant Tesco as both parties remain tight lipped.
But the City considered the retailer had come off best as shares leapt 6p next day and in the letters columns the retailer’s boss ‘call me Dave’ Lewis was seen as the people’s champion.
Which may be symptomatic of things to come, and with the pound down 14% against the euro and 16% against the dollar since that watershed day in June, the order of things is bound to change. Yes, Irish cheddar may start to find access more difficult, but before you get too excited, don’t forget so too will the likes of soya and maize gluten.
So while the currency rates may have put 4-6ppl on your milk price, perhaps more worrying is the political leaning to a hard Brexit, which, according to Andersons’ projection, could knock the stuffing out of support post-2020, if any survives at all.
But that may be jumping ahead of ourselves when we are currently being short changed to the tune of £200m. One price – Yew Tree Dairy’s – has been announced at 30p for October, which is not too far off the benchmark figures of AMPE and MCVE, and where all prices based on those indices should be.
With commodities high and supply short there is no excuse for the current dilatory payments. Which is why PO Direct Milk called deadlock on Muller’s wholly feeble 1.5ppl increase for November, which took its base price to around 21p.
With this level of dysfunction going on in the industry, it begs the question if we will ever get ourselves organised enough to tackle the really big challenges that lie ahead!