Freshways has introduced it plans to be the primary processor to pay producers 50p/litre, beginning in September.
The firm additionally confirmed a July worth of 45p/litre for an ordinary liquid litre of 4% butterfat and three.3% protein.
The liquid processor is the primary to launch a goal worth for September and break the 50p/litre mark for an ordinary litre, in accordance to milkprices.com.
See additionally: 4 methods to enhance dairy milking routines
Bali Nijjar, managing director at Freshways, wrote to suppliers saying the aim and setting out the explanations behind the choice.
He mentioned farm manufacturing prices are unlikely to scale back in the brief time period, commodity costs are at a degree that instructions this milk worth, and he believed the spot worth for August can be at about 50p/litre.
“There are presently no indicators that milk volumes are rising and, in truth, analysts assume the autumn-off in manufacturing after the height is quicker than in earlier years. We need to mitigate this for our milk pool,” mentioned Mr Nijjar.
“Retail milk costs are rising. Aldi is now at £1.35 for 4 pints, and Sainsbury’s, Asda and Morrisons are on the identical degree. We additionally anticipate our clients to enhance their costs to match.”
The merger between Nijjar Group Holdings Ltd (Freshways) and Medina Holdings Ltd was given the go-forward by the Competition and Markets Authority in March and is due to be accomplished by July.
The overwhelming majority of producers who had been beforehand with Medina have been transferred to agreements with Freshways and can subsequently obtain these costs.