Graham’s the Family Dairy has announced a 2.25ppl increase to its farmers’ milk price, as competition amongst processors hots up in the wake of tightening supplies.
The Scottish milk processor will pay farmers 29ppl from 15 October, bringing Graham’s price into line with that of the Müller-Wiseman group.
Earlier today, Müller-Wiseman announced a 2.57ppl hike, also from 15 October, taking it to 29ppl. It too has an extensive Scottish dairy farmer supply base.
Graham’s had longstanding and strong relationships with its milk producers and recognised that farmers were faced with poor harvests and ever increasing costs, said chairman Dr Robert Graham.
“A contributory factor in Graham’s being able to increase the price we pay our farmers is the fact our butter business continues to perform extremely well,” he said.
Having butter in which to utilise the cream extracted from Graham’s milk had protected the company from some of the extreme cream price volatility that had had a severe impact on dairy companies, Graham added.
Also today, middle-ground dairy distributor JN Dairies said it would be increasing the amount it paid its supplying milk processors to ensure farmers received more money.
It would do so by increasing the price it charged its customers from 24 September “in order to recoup the necessary money from the marketplace”.
“As a responsible player, the company is taking a proactive role to fully support its milk processing suppliers who need to support the farmers, even where the terms of our contracts allows us not to,” said director Manrupe Singh Nijjar.
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