Freshways has confirmed that it is holding its farmgate milk price at 50p/litre for October.
The liquid processor had previously warned that its ability to keep paying 50p/litre for a standard litre of 4% butterfat and 3.3% protein would depend on what its competitors were doing, as most had failed to match such levels.
But in his latest letter to suppliers, Freshways managing director Bali Nijjar said after “tireless negotiation” with customers he was able to confirm a price of 50p/litre for October.
See also: Milk markets: Will 50p/litre cause production to increase?
But he added: “I would however warn, that as previously stated, it will be difficult to remain competitive if the remainder of the liquid markets remain at a subdued level.
“Furthermore, our customers will begin to lose business to the lower prices available in the major multiples.”
Meanwhile, Waitrose has agreed to increase the price it pays suppliers by 1.3p/litre from September, taking its standard liquid price (4% butterfat and 3.3% protein) from 47.70p/litre to 49p/litre.
Milkprices.com has also reported that M&S’s Milk Pledge Plus pricing formula has triggered a 1.63p/litre increase, which takes effect from this month.
The increase follows a 2.2p/litre increase last month and takes the price for a liquid standard litre (4% butterfat and 3.3% protein) from 48.47p/litre to 50.1p/litre.
