Cornish dairy adopts agile pricing model in face of spiking costs

By Katy Askew

- Last updated on GMT

Monthly pricing updates to support farmers in volatile climate / Pic: GettyImages
Monthly pricing updates to support farmers in volatile climate / Pic: GettyImages

Related tags Farmgate milk price

Cornish clotted cream producer Rodda’s, one of the UK’s largest milk processors, has adapted its pricing model to support farmers at a time of rising on-farm costs.

The Cornish dairy said it is working alongside its suppliers to move to a new monthly pricing model. This will see price increases coming through to farmers faster, temporarily replacing the quarterly pricing that the business has used over the past five years.

This approach delivered ‘strong, stable and market leading prices’ to its milk suppliers but the monthly model will help the business support its farmers at a time when the industry is seeing a ‘fast-moving national price’, Rodda’s said. It aims to help dairy farmers manage internal cost pressures and supplementary payments will be made at the end of each month.

“The Dairy industry is facing unprecedented increases in costs and previously unseen volatility in the price of milk. We recognise that using our traditional quarterly model in the current climate is causing a lag on updating our milk price accordingly, which is impacting our suppliers,”​ Nicholas Rodda, Managing Director of Rodda’s said.

“We have a long-standing relationship with our farmers and that is why we have taken prompt action to adjust our pricing accordingly. We want to provide them with the stability they need to run their business. We continue to closely monitor all of the factors that influence the milk price in the coming months.”

The business is also currently recruiting new suppliers of Cornish milk to join its milk supply group, after continuing rise in demand for Rodda’s products.

“We continue to see an increasing demand for our much-loved Rodda’s products, which is why we are currently recruiting for new suppliers into our milk pool. We are looking for Cornish farmers that share our family values and welfare standards, that are looking to join our Cornish Milk Supply Group,”​ Paddy O’ Keeffe, Operations Director at Rodda’s, added.

Rodda’s sources its milk from over 40 farming families located in Cornwall. It’s the partnership with these farms that ensures the consistent high-quality milk, which is enjoyed across the Rodda’s portfolio. The business is now looking to widen its net beyond 30 miles of the creamery, offering more farmers the opportunity to join its well-respected milk supply group.

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