5ppl milk price reduction in only 12 days for Medina suppliers

Only 12 days ago Medina suppliers were given notice of a 2ppl milk price cut from May 1st.

Now a further 3ppl reduction is coming, meaning a whopping 5ppl on May 1st taking producers liquid standard litre price to 20.75ppl.

If that wasn’t enough pain, payments to farmers will be delayed by 21 days with the next payment to be made on the 4th May.

In the letter dated 15th April, Medina claim spot milk price is 5ppl that day and cream is trading at 80p kg which is certainly not correct. Spot milk on Wednesday and today was checked by me with three traders and was 15 to 16p and cream was 90p kg. I accept that 10 days ago it was 5p and 80p, but that was very short lived and not a valid reason for Medina to use.  The same figures were quoted by Medina’s Arfaiz yesterday to its farmer group and sadly no one challenged them.

This industry appears to be very selective and inaccurate with the data it uses (see below).

Whilst the one positive is Medina will collect all of the milk, there is no doubt the 3-week payment deferral will send shivers down the spine of most, if not all Medina suppliers.