OMSCO milk pricing for April and beyond is in the spotlight.
Posted on: 07/03/22
Last Fridays posting of the OMSCO 1ppl milk price increase for April, May and June 2022 caused a tsunami of emails from OMSCO members some of whom were puzzled at the calculations with others close to volcanic.
The main source of tension revolves around the 31.25ppl April, May and June 2021 OMSCo milk price and the claim by OMSCo that April, May and June 2022 farmgate milk prices had increased by 1ppl to 32.25ppl.
Summarising all those emails results in the following OMSCO price comparisons at April 2021
Standard organic price 28.5p
Bscan bonus 1.5p
Scc bonus 0.25p
PWAB (Producing without antibiotics) bonus 2.4p which for 2022 has reduced to 1ppl
Total - 32.65ppl as at April 2021
In addition, OMSCo producers have lost all bfat + Protein payments on so called non allocation litres.
This confirms that excluding the 2.4ppl PWAB last year’s price was actually 30.25ppl and this year’s price claim of a 1ppl increase to 31.25ppl includes the PWAB 1ppl.
It’s a mystery to OMSCo producers where the quoted 31.25ppl figure comes from (as opposed to the 30.25ppl above which all appear to agree with). None of the producers who have contacted Ian can work out how this 31.25ppl figure has been calculated.
It’s certainly not straightforward, transparent and is complicated.
So, with the April 2022 price quoted as 32.25ppl it’s a drop of 0.4ppl for the PWAB suppliers who achieved 32.65ppl a year ago. The only OMSCO suppliers who haven't experienced a 2022 price reduction are the ones who converted in the last year who will be up a penny with their PWAB bonus.
The reality is the gap between OMSCO producers milk price and others is seismic and unsustainable especially with two OMSCO producers stating that their costs having increased by between 5.5ppl and 6ppl in the 12-month period.
In summary the April figures appear to be
Spring 2021 PWAB 32.65 (inc 2.4p/l PWAB bonus)
Spring 2022 PWAB 32.25 (inc 1p/l PWAB bonus)
Spring 2021 non-PWAB 30.25
Spring 2022 non-PWAB 27.75 (inc 5p/l penalty for not being PWAB)
Meanwhile one eagle eyed producer says today Sainsburys are selling Yeo Valley Organic Yoghurt, made form OMSCO suppliers milk, at 22p for 100grams whilst
Onken (conventional yoghurt) is selling for 39p/100g and Rachel's organic yoghurt is selling for twice the price @ 44p/100g. Is this a case of selling significantly below cost or are producers funding the discounts?