Quick facts:
- privately owned company whose principal activities are the collection, manufacture and marketing of milk and dairy products.
- processing plants in Chester, Peterborough and Holme-on-Spalding Moor
- handle about 650 million litres of milk mainly sourced from 535 farmers on direct supply contracts
- produce a wide range of food ingredients such as cream, butter, condensed milk and chocolate crumb which are sold to the UK and European food manufacturing sector.
- brought in an A and B pricing model in 2015. “A volume” was defined as 100% average daily milk production between October 2012 and September 2014. Any production over this is defined as ‘B’ litres and paid based on actual returns from trade. From April 2016 the ratio will change to 80% A volume.
- for the year ending March 2015 Meadow Foods posted annual turnover of £376m and a pre-tax profit of £13.7m. During this period the company upgraded their Reverse Osmosis skim and milk concentration plant and upgraded facilities at their Peterborough factory.
- This year Meadow Foods has doubled the processing capacity at their Peterborough plant and commissioned a new soft cheese plant at Holme upon Spalding Moor
- In October Meadow Foods announced the launch of the Green Valley Dairy brand - a range of products specifically targeted at wholesalers, caterers and restaurant businesses.
NFU President Meurig Raymond said: “Today we had a robust and frank discussion with Meadow Foods about the UK dairy market and the challenges facing farmers and processors. As one of our largest milk buyers it must have an open and transparent relationship with its suppliers. We pressed the need for discussion and consultation with their 600 suppliers as well as sufficient notice of any contract or pricing changes. Meadow Foods has agreed to relook at its producer representation model, improving on the Cumbrian producer group that is already in place.”
Rob Harrison, NFU dairy board chairman, added: “We’re under no illusion that the dairy market is struggling at the moment. What we need is for Meadow Foods, and all milk buyers, to be honest and frank with their farmers as to how they will manage supply and demand over coming months. Farmers need to understand what market their milk is supplying and why therefore the milk price may be more volatile than others. That said, I would urge Meadow Foods, alongside other milk buyers, to do their utmost to add value into the dairy category, to allow a more sustainable and competitive farmgate price for their suppliers.”