Fixed Price Options – which deals have proved to be bad or possibly disastrous outcomes?

Back on 1^st July Muller Direct farmers had the opportunity to enter into a contract for up to 50% of their milk on a 3 year fixed price of 29ppl to supply Lidl.

Since then, the retailer has confirmed an additional 11ppl to be paid to those who contracted which to be fair to Lidl is highly commendable.

Ian is hearing reports that one or more processors fixed price contracts at 30p and less is not only proving to be a bad outcome for a couple of farmers it is looking like its terminal for their dairy farming business.

Ian would like any readers who have a fixed price deal to confidentially email him with the following details.

1. Date the fixed price contract commenced
2. The ppl price
3. The processor and if relevant the retail customer’s name
4. The date the contract ends
5. Any top up payments already confirmed or are you still on the original fixed price?
6. Any other relevant comments.

Once Ian has this information and checked it out he intends to produce a league table of the good (AKA Lidl for example) and the bad outcome deals.