Freshways keep pushing producers towards the edge
Posted on: 01/05/20
In a letter to producers dated Friday 24th April, the only interpretation can be that Freshways have confirmed they have been buying cheap spot milk in order to “balance week to week and day to day based on sales fluctuations”. This statement hasn’t been well received by some of the producers Freshways told at very short notice to dump milk without payment from their processor.
At the same time Freshways issued new terms and conditions to producers relating to a number of areas including the 60/40% split of A and B litres plus more, clearly having received legal advice that producers must sign up and agree to the new T’s & C’s.
Then comes the killer statement.
“We requested that famers confirm agreement to last week’s changes and therefore I have to say that those of you who have not sent that conformation, we may have to look to reduce your A litre price in June 2020 and this bulletin acts as notice for that June 2020 A litre price”
Most have translated this to mean sign and return or we will drop your A litre price. Guess what, most have signed blind on the basis they only have two options as in quit or take the medicine.