Dairy Crest is reporting good progress on developing its new concept of valuing and selling milk - the Final Market Value Model - with positive feedback from competitors, customers and industry leaders alike.
The model will effectively rate milk on secondary products subsequently manufactured and sold, with the aim of diluting the price-reducing effect of commodity markets.
It was introduced to the industry nearly two months ago by Dairy Crest commercial director Mark Taylor.
At the time he called on industry to embrace the need to change the way milk is sold and to contribute to discussion on achieving that aim. The
document has been distributed to Dairy Crest’s competitors, customers, farming unions, industry bodies and politicians.
Taylor is seeking cross-industry support for any new mechanism and does not want
his company to be seen as foisting its view upon the industry without debate. “My model should give them greater price stability, less volatility and more transparency,” he said.
“Farmer prices should be more closely linked to the final market price.”
Meanwhile, both Robert Wiseman Dairies and Arla Foods have declared that they will be leaving their milk prices unchanged for August to bring calm and stability into the market. However, tit-for-tat manoeuvring is expected to continue, with the two keeping an eye on Dairy Crest.
Farmers for Action, which has run out of patience with the main milk buyers, planned a six-hour stoppage of milk transport vehicles this week.
“If both processors and retailers do not address the current milk price crisis, it will be the intention to double the stoppage time the following week,” warned FfA.
By Chris Walkland