The retailers and dairy customers are playing Russian Roulette with FFA
Posted on: 19/11/21
Numerous processors are comenting both privately and openly along the lines of
“we have still not recovered our milk price increases from all customers as of today… I am sure you can imagine the challenges that we are currently facing and getting price increases from supermarket customers is not straight forward”.
Well out of hibernation steps David Handley and FFA who are now considering manning the protest/picket lines in December. My guess is the first targets will be selected retailers and RDC sites which will inevitably cause some disruption. Maybe Handley can team up with Jeremy Clarkson on the matter!!
Dumb retailers will dig their heels in. Smart retailers realising most if not all processors will fail to supply 100% of customers dairy requirements, particularly in liquid supplies, will pay extra either on top of the contracted price or as a supplement in conjunction with ensuring their requirements are prioritised and at 100%. That will leave the awkward squad and dumb retailers even shorter of milk.
Well that’s how Ian would consider negotiating.