Coronavirus: Medina Dairy slashes milk price by further 3ppl

The processor has slashed its May milk price by 5 pence per litre due to the impact of the coronavirus
The processor has slashed its May milk price by 5 pence per litre due to the impact of the coronavirus

Farmers who supply Medina Dairy will now see a five pence per litre reduction in the processor's standard litre price starting from 1 May.

The firm, which sources from 156 dairy farmers, will cut its milk price by another 3p per litre due to the impact of the coronavirus.

The processor announced its initial milk price reduction on 6 April, of 2p per litre.

But in a letter sent to its suppliers on 15 April, Arfaiz Hussain, director of processing, said the milk sector has since 'deteriorated rapidly'.

Medina's standard litre now sits at just 20.75p per litre from 1 May 2020.

“The loss of food service sales, together with the first signs of the spring milk flush means that there is just too much milk,” Mr Hussain said.

“All milk will continue to be collected and no A/B milk pricing quota will be introduced. As soon as markets allow, we will introduce price rises without delay.”

The processor called the announcement 'regrettable changes' which relate 'directly' to the impact of the spread of Covid-19 in the UK.

Medina Dairy is a major supplier of fresh milk, dairy and bakery products to the retail and foodservice sectors.

It supplies thousands of hotels, pubs, restaurants and coffee shops both directly and through a range of wholesale customers.

The processor also supplies dairy to 150 hospitals and 110 care homes as well as some 7,000 local convenience stores.

Although there has been an uplift in retail sales, the closure of pubs, coffee shops and restaurants, Medina’s food service sales have 'reduced to almost zero'.