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Dairies at odds in milk wars; IN ASSOCIATION WITH Rensburg Sheppards Ingredients group in move to tempt suppliers.


Byline: BY ALISTAIR HOUGHTON Daily Post Business Staff

A CHESHIRE dairy ingredients group is hoping to exploit market uncertainty by recruiting wavering milk suppliers in the North West.

Meadow Foods is calling on dairy farmers Dairy Farmers is one of Australia's largest and oldest dairy manufacturers, established in 1900, supplying products to local and international markets such as eastern Europe, the Middle East and Asia.  to review their supply contracts in the wake of increasing instability in the milk sector.

It follows last week's decision by Dairy Farmers of Britain Dairy Farmers of Britain (DFoB) is a UK co-operative milk processor that buys milk directly from farmers and has several factories producing milk and cheese products for sale in various regions throughout the UK.  (DFB) to cut 640 jobs, close two factories and reduce its milk price by 2p/litre - almost 4p below the national average.

DFB, worried about loss of critical mass, has in turn threatened legal action against producers who do not see out their supply contracts.

It will also target milk buyers who attempt to lure lure

the skin-covered object which runs on a monorail on a Greyhound racing track and which the dogs are schooled to chase. The lure must be kept 30 to 40 ft ahead of the leading dog so that the field is stretched out.
 suppliers from the co-operative.

A DFB spokesman said: "We realise members are disappointed with the milk price and with the performance of the group but our actions have not been taken lightly - they are designed to return the business to profitability next year.

"Members are on contracts and it is our intention to hold them to those contracts."

Meadow Foods, which grew its own sales by 12% to pounds 123m for the six months to October, has arranged meetings for producers interested in moving their supply agreements. One will be held tomorrow at the company's factory in Marlston-cum-Lache, outside Chester.

Managing director Paul Deakin said the company was looking to boost its milk intake by 100m litres annually.

He said: "Volatility in the milk markets is driving many food manufacturers to secure their supply of quality milk. We're well placed to capitalise on this by providing guaranteed supplies for manufacturers while offering farmers a market leading price and a stable buyer for their milk."

Meadow Foods already has 400 farmer suppliers across Wales Wales, Welsh Cymru, western peninsula and political division (principality) of Great Britain (1991 pop. 2,798,200), 8,016 sq mi (20,761 sq km), west of England; politically united with England since 1536. The capital is Cardiff. , Cumbria and the North West.

Its products include butter, sweetened condensed milk condensed milk: see milk.  and chocolate crumb, used by companies such as Thorntons to make chocolate.

In the year ending March, 2008, Meadow saw sales rise 22% to pounds 243m, with profits of pounds 5m.

It employs 150 people at its headquarters and says it employs more than 300 people indirectly.

alistairhoughton@dailypost.co.uk

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Publication:Daily Post (Liverpool, England)
Date:Dec 10, 2008
Words:355
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