Meadow Foods, the UK’s largest independent dairy, has launched a fixed forward pricing scheme for the first time.  The forward fixed price will be 28 ppl for a 24 month period from 1^st July 2018 to 30^th June 2020. The introduction of a Forward Fixed Pricing comes as a direct response to farmer feedback. 

Every Meadow Foods producer will be automatically allocated some Forward Fixed Price litres from their A litre volume.  This is expected to be around 3% of their annual volume, with producers having the option to opt out. In line with Meadow Foods’ other pricing models, this model for fixed pricing is straight forward and easy to understand. Although the volume for each producer is relatively modest, the company aims to build on this and provide increased security of pricing for its producers. In fact Meadow is already talking to other customers who are interested in Forward Fixed Pricing. 

Mark Chantler, Chief Executive of Meadow Foods, comments: “We’re pleased to be able to introduce this new pricing option as a direct result of feedback from our producers.  We’re committed to offering our producers a simple, secure and straight milk price.”

“Although we feel that milk prices are likely to rise over the summer, it’s harder to forecast what the milk price will be for the 24 month period.  Having a 28ppl fixed price for the full 24 months will give some producers the security they desire for a part of their allocated volume.”

Meadow Foods also recently announced a new recruitment campaign to meet extra demand from new product sales.

Meadow Foods is the UK’s largest independently owned dairy group and leading supplier of quality dairy ingredients to the food industry. The award-winning company operates from BRC A and AA accredited sites in Chester, Peterborough and Holme-on-Spalding Moor where they manufacture value added dairy ingredients 7 days a week for some of the UK’s best known food manufacturers.  Meadow Foods currently employs more than 275 people and handles in excess of 650 million litres of milk each year direct from over 650 farmer suppliers from across the UK.