Iconic Dales cheesemakers seeks new farmer suppliers

There was light for dairy farmers at the end of two years of low returns in the closing months of 2016 as European milk production began to drop and prices slowly grew from a low base that has forced the worst affected British farmers to quit the troubled sector.
David Hartley, managing director of Wensleydale Creamery, which is looking to recruit new farmer suppliers.  Picture: Daniel OxtobyDavid Hartley, managing director of Wensleydale Creamery, which is looking to recruit new farmer suppliers.  Picture: Daniel Oxtoby
David Hartley, managing director of Wensleydale Creamery, which is looking to recruit new farmer suppliers. Picture: Daniel Oxtoby

Two years of farmgate prices well below the cost of production as global supply of dairy products outstripped demand cast a long shadow over the sustainability of many producers’ operations and in such times a good relationship with a processor can be crucial to a farmer’s prospects.

Milk producer groups are seen as a way of strengthening the hand of farmers, providing a platform for groups of farmers to negotiate fairer terms and protection from price volatility with processors. Likewise, such groups provide a processor with a stable supply of milk from vetted and trusted farm businesses.

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This is a model that Wensleydale Creamery has embraced since the deregulation of the Milk Marketing Board which ended the practice of milk being sold and bought via this standalone entity.

This year, the North Yorkshire creamery’s milk producer group celebrates its 21st year in operation.

It is a group that now consists of 42 local farms – including 18 who have been members of the group since it started – and ambitious plans to capitalise on the popularity of the creamery’s award-winning cheeses, butter and yoghurts, as well as other milk by-products both at home and abroad means more farmers are actively sought to join its producer group.

The company, which operates across two sites, one in Hawes – the centre of its cheesemaking process – and one in Kirkby Malzeard, has invested £5m in new dairy and cheese-making facilities. A new dairy opened in Hawes in March 2015 and the creamery is now reaping the benefits of greater and more diverse processing capacity.

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New equipment allows whey to be processed by initially separating whey cream from milk from the whey produced during the cheesemaking process, with further processing to produce whey protein concentrate which is sold to Wales-based Volac, which in turn supplies producers of sports nutrition supplements.

The creamery is also currently installing extra whey processing equipment to open a reverse osmosis plant which takes water out of the processed whey to produce whey concentrate and lactose concentrate, which can be fed to dairy cows or supplied to an anaerobic plant to produce energy.

The addition of new equipment is allowing the business to access new markets for what is essentially a by-product of its core cheese-making process.

Momentum is behind the the creamery too, having just enjoyed its busiest ever festive trading period which saw sales rise by ten per cent in the run up to Christmas.

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David Hartley, the creamery’s managing director, was due for talks with one potential new farmer supplier after speaking to Country Week. He told of what was driving the expanion of the milk producer group.

“We’re looking to develop new sales opportunities in all areas of our business – in the food service and industrial sectors, retail and exports – and to do that we’re looking to sell a higher volume of cheese and therefore we want to source more milk,” Mr Hartley said.

“We can buy both directly from farmers and from other markets but we think it is more preferable to buy from farms and have that lasting relationship.”

The biggest concentration of the creamery’s farmer suppliers are based within a 17-mile radius, between Hawes and Leyburn, though some are located further afield, including around Bedale and Richmond.

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Mr Hartley is looking to recruit a specific profile of dairy farmer.

“We try and select farms we want to work with based on milk quality and the style of farm they are. We are looking to recruit the typical family farm with a particular style of milk that reflects our business.

“When we do so, the overwhelming thing for us is that we see it as taking an employee on. It is key that they understand why we buy the milk we do and we like to understand how they operate because what we really want is stability in our supply chain.

“Our strategy is to have good producers who can expand and will expand and if they can we’d encourage them to do so.”

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Like all processors, the price the creamery can offer is dictated by market forces. It currently pays 26.75p for a standard litre of milk. Mr Hartley said producers have consistently received 0.5p above the national ‘basket’ price over the last 12 months.

“We follow the industry and look at a basket of prices in the country. We reflect what that basket average is and pay as close to or above that price.

“We work with a committee of producers – six individuals – and we talk to them regularly about pricing and we try to negotiate any price reductions as much as we can.

“We have to manage our input prices and what’s right for our business but we’re mindful of the pressures on the industry and our producer committee has direct contact with me to express their concerns and the challenges they face.”