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Stackyard News Aug 07

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Capital Milk to Buy and Sell Milk on Behalf of UK Dairy Farmers

UK dairy farmers will be able to sell their milk through Capital Milk, a newly formed professional brokerage company based in Hampshire, from 1 October.


dairy cows

Milk will be bought from farmers and sold on to a range of dairy customers on a variety of short and long term contracts. With the current milk shortage, Capital Milk directors, Chris White and David Lunniss are confident they can improve the returns of dairy farmers who use their service.

“Farm gate prices fell from 24.5ppl to 18.5ppl in the ten years from 1995, while processor gross margins increased by 8%, and retail gross margins increased ten-fold from 3% to 28%,” says Mr White. “During this time farmers have been forced to sell milk below the cost of production.

“As dairy consultants, we have the experience and skills to negotiate milk contracts on behalf of dairy farmers, and believe that most of the current contracts are inappropriate and severely detrimental to the producer.

“We want to use our experience to help secure better returns and a long term profitable future for everyone across the whole dairy supply chain – but particularly for farmers.”

Any dairy producers interested in selling their milk via Capital Milk can contact Chris White or David Lunniss on tel: 01794 367611.

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