3ppl minimum one hit milk price increase for Freshways suppliers – from 1st January
Posted on: 05/11/21
Freshways have gone for a big one hit increase of 3ppl from 1st January which will take producers standard liquid litre price to 33ppl which is undoubtedly where all liquid processors need to be as a minimum asap.
There should be benefits to Freshways and its customers from this one hit approach in terms of not having to wrestle with them on price increases on a monthly basis. Note this is a minimum price increase announcement whilst Freshways continue discussions with customers.
There are now two hot topics in the UK liquid business. Will others follow Freshways and get to 33p plus by January 1st. On that score the spotlight is now firmly on Muller and The Muller Milk Group (Farmer) Board who need to seismically up their target as well as total radio silence from Meadow Foods who need to come to the table soon.
Second comes our retailers and whether they like it or not the price of milk has to increase to help cover cost inflation at farm and processor level. Ian wouldn’t want to be a retailer who resists milk price increases in the run up to Xmas!