Farm Foods 40ppl offer opens up a Pandora’s Box

In the last bulletin we asked readers to crack the milk code for the supplier of incredibly cheap milk on sale by Farm Foods at 40ppl!

Numerous readers collected the Potter equivalent of a Crackerjack pencil and all identified the supplier as Payne’s Dairies.

What Ian wasn’t prepared for were details of allegedly how Farm Foods have played out their recent October milk supply tender.

The three incumbent suppliers to Farm Foods today are Payne’s, Medina and Grahams Dairies (Scotland). Allegedly once Farm Foods received new tenders from Medina and Payne’s they served notice to terminate all three supply contracts with the suggestion that one of the big two GB liquid processors was involved and had successfully tendered and taken them all by storm as sole supplier to Farm Foods with a table topping price.

Whether this was 100% accurate is debatable but for sure when three are given notice one or more is likely to bite back and drop their prices even lower than what is rumoured to already be an eye watering price of under 35ppl.

Reports indicate the outcome is that Medina retains its region and Payne’s retains its region and takes Grahams region in Scotland.  So the losers, if you can call it that, are Grahams Dairies and the winners are certainly Farm Foods.

This certainly appears to have been a particularly aggressive tender and one processor called it a blood bath another said it was tactical Farm Foods tendering.

Payne’s have certainly gained more volume and highly likely for less revenue in ppl. Why is Payne’s so particularly keen to build its total sales volumes?

That leaves one question?  Who’s the villain and who’s the hero in this process?