Considering switching milk buyer?

Published 28 October 16

For those lucky enough to have a choice, the decision about where to sell your milk needs to consider more than the current headline price being offered. To find the best option for your dairy business, there are a host of important factors to consider, which AHDB Dairy has summarised into a fact sheet.

These include whether the milk buyers’ business is suited to your farm system (calving pattern, feeding strategy, herd structure), along with whether the milk you deliver is aligned to their requirements. Being able to meet buyer specifications efficiently should ensure you are not only operating at low cost, but optimising your milk price. The AHDB Dairy Milk Price Calculator gives you the opportunity to test this.

Long term stability is not determined on the farm, however, so the decision on who to supply should also consider the milk buyers’ performance and ability to pay a competitive price now and into the future. As revealed in recent analysis, this will partly be determined by how exposed they are to market cycles, but it will also be affected by how well equipped they are to deal with this volatility. Is it simply passed on to their farmer suppliers or do they have tools or strategies in place to limit its impact, both in their business and in yours?