Increased competition for milk around Severnside?

Published 21 October 15

There has been very little competition for raw milk in the UK for the last 12 months due to the overall surplus of milk in the country. The Müller takeover of Dairy Crest’s dairies division would normally be expected to reduce competition further by taking one milk buyer out of the market. However, the 100m litres toll processing sale to Medina adds a further twist.

If Medina are to be successful in their aim of becoming an alternative supplier to retailers via the Severnside toll processing, then they will likely need milk close to the factory to achieve it. The deal, therefore, has the potential to increase competition for raw milk in the Severnside area. Farmers should be ready to compare any offers, although should also be aware that the toll processing at Severnside is only required to be in place for five years.