Isn’t quite as strong as people think:
Tesco, which bases the price it pays to its 800 dedicated suppliers on the cost of production as estimated by Promar, actually cut its rate from 1 April reflecting predicted farmer savings on feed and fertiliser.
The result was a 0.47p/litre drop to 26.9p/litre for those signed up to Promar’s costings service.
In the past, this might have triggered a domino effect, with other buyers following suit.
But the reverse has been true, with Wyke Farms, Arla Foods, Glanbia, Milk Link, First Milk and Belton Cheese all increasing their prices for May and June by between 0.25p/litre and 0.75p/litre…
The reasons for the price changes are mixed, though most are attributed to the ongoing improvement in commodity prices…
