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Those who exit will then need to meet Arla, Muller and Red Tractor standards or face being forced to leave the industry.The remainder need to digest their weaknesses and aim to up their game and improve their rating in a years time, especially those in the 6% to 20% relegation zone.
I accept it is possible the odd farmer will successfully appeal on temporary grounds, which were beyond their control.At the same time, they will waiting like vultures for the first opportunity (or excuse) to cut farm gate milk prices.Since its launch in 2007 I calculate the TSDG cost to Tesco taking its TSDG price compared it to the average Dairy Co price (which actually includes the TSDG price) indicates Tescos financial investment in terms of the additional money paid to farmers is 300 million , with minimal benefit to Tesco.However the reality is that the campaign goes back to AHDBs strategic decision last year to do more promotional activity with Dairy UK / The Dairy Council and it has taken this long to get something sorted.Quite why it has taken this long is another matter.Dont shoot the messenger, but the milk market is tanking down now!
For example, cream was comfortably at 2.95 to 3.00 and is now trading at 2.25, which is still a good price but a 70p plus drop in cream is roughly a 7ppl milk price reduction in income!
Its clear the most vocal groups have no desire to engage with the industry or dairy farmers and simply have declared war on the sector.
They have what I would describe as a fairy-tale dream to close down livestock farming irrespective of farming system.
QVIS basically drives efficiency and is a scoring mechanism, which indicates whether a farm is operating to a satisfactory standard as per the retailers Code of Practice.
At the time I commented it would result in opportunities for the best performing farmers and casualties in terms of the loss of their TSDG contract for the worst performers as Tesco keep the best and shed the worst.
Consequently the whole livestock sector and milk and meat related food industry is their target, and all systems are demonised from large indoor herds to very small extensive herds, from organic to conventional.