Dairy Partners farmers furious they are buying cheap spot milk

In a letter to its farmer suppliers, Dairy Partners (mozzarella cheese in South Wales) jaw dropping statement states

“Our revised budget plans are based on farm forecasted volumes and if no action is taken then we will not be able to take maximum opportunity for low cost milk, which in turn would impact all our Direct Supply producers. Please therefore ensure you keep to your own forecasted supply volume over the coming months.”

This can only be described as a real kick in the nuts , a processor requesting loyal farmers do not supply more milk than forecasted in order to allow the business to take advantage of cheap spot milk. Basically, restrict your deliveries to enable us to buy cheap spot milk and if you don’t, we will likely cut your milk price further. Note the last Dairy Partners price cut was 2ppl from April 1st.

Cutting production is easier said than done as we approach the spring peak and it has left some Dairy Partners farmers furious and understandably questioning whether the business has deeper rooted issues. Clearly it has surplus processing capacity, but wants to buy cheap spot milk from competitors/brokers.

The processor has not confirmed to its farmers at what price any surplus milk will be paid or the formula for calculating that price.