Medina Dairy has introduced a 1p/litre price improve from 1 September that can take its common normal litre price to 25.75p/litre.

The milk processor, one of many hardest hit by the closure of the meals service sector in the course of the coronavirus lockdown, says the rise displays a extra constructive market atmosphere and its efforts to take important price out of the business.

It follows a 1p/litre improve on 15 June, 1.5p/litre on 1 July and 1.5p/litre from 1 August and can return its price to pre-coronavirus ranges.

See additionally: Alternatives to selling livestock at markets this autumn

The lockdown had a significant impact on the agency as a result of a big chunk of its business is servicing meals service and wholesale markets, supplying hundreds of accommodations, pubs, eating places and low retailers.

Medina introduced in April it was slashing the milk price paid to its suppliers and delaying their milk cheques to ease its cashflow.

Plant closure

But the agency mentioned its Watson’s Dairy contemporary liquid processing web site in Hampshire will turn into a casualty of the present disaster.

It has introduced the deliberate closure of the plant, which employs 144 employees, as a part of a technique to economize by consolidating its processing operations.

The business says that the transfer shouldn’t have an effect on any of its 156 farmer suppliers as their milk will likely be processed at others websites.

These embrace Buckley’s Dairy in West Yorkshire, Severnside in Gloucestershire and the Acton dairy in west London operated by Freshways, Medina’s processing associate.

The proposed closure displays the extraordinarily difficult market situations being confronted by your complete contemporary liquid milk sector and particularly the loss for Watson’s of a significant retail contract which makes the positioning unviable, mentioned an announcement.

‘Much regret’

Sheazad Hussain, chief government of Medina Dairy, mentioned: “It is with a lot remorse, that we’ve introduced our proposal to stop operations at our Watson’s Dairy web site. 

“The proposal follows a significant evaluate of our business which concluded that by simplifying and consolidating our processing exercise we can create a extra sustainable and appropriately scaled business. 

“This in turn will enable us to continue to deliver a high level of service to existing customers and provide a platform from which we can respond to future market opportunities.”

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