Saputo (AKA Dairy Crest Davidstow) stand on until 1st October which triggers deadlock with DCD
Posted on: 04/08/20
The Saputo’s manufacturing standard litre price will remain at 28.65ppl for September deliveries and based on a liquid standard litre at 27.63ppl.
Saputo have surprisingly stood firm on its September farmgate milk price and decided not to reward its farmers with any additional money following its incredible Covid 19 sales figures (see below).
Saputo’s sales of its flagship branded cheese, Cathedral City, have seen revenue up a staggering 36% with sales volume up 27%.
This stand on position was not agreed with DCD, who understandably felt the firms results and gains should be shared with the farmers and not squirreled away.
The lack of agreement/deadlock means any producer can leave after 3 months’ notice and whilst three claim to have an alternative milk purchaser, the options look limited to those who might want to move and the Saputo head honchos will know that.
No doubt the DCD statement in its latest Newsletter declaring the DCD board is planning to submit a response to the DEFRA contracts consultation will be more spicy as a result of the recent deadlock. However, the deadline for submissions is not until September 15th and by 1st September a fair and justified price increase from Saputo might quell the disgruntled farmers and dilute their final submission to DEFRA.