An article in the Farmers Guardian reports that dedicated milk producers for Marks & Spencers will be on a standard litre price of 31.737ppl from August 1st.
The retailer has announced an increase of 2.307ppl which has been calculated based on the Milk Pledge Plus pricing formula, which takes account of the farmers' costs of production as well as reflecting movement in the retail price of milk in M & S stores.
M&S agricultural manager Steve McLean said: “Our Milk Pledge Plus payment model has been developed to remove the uncertainty of price fluctuations so that our farmers have greater security and confidence in the future. It was developed in consultation with Dairy Crest, our liquid milk processing partner, and our farmer suppliers and is calculated transparently on an agreed formula that is based on objective indices covering input costs and the movement of the total market.”
Milk Pledge Plus was launched in 2010 and is an extension of the original M&S Milk Pledge, launched 10 years ago. The payment model also rewards farmers for independently assessed farm standards and producers are encouraged to achieve the highest standards of health and welfare.