Fane Valley Dairies Commences Direct Milk Procurement
11th June 2012

In March 2012 Fane Valley revealed plans to procure a proportion of its annual milk processing requirements directly from local producers.

Trevor Lockhart, Fane Valley Chief Executive has described the initial response as “very encouraging and ahead of expectations”. Whilst emphasising that Fane Valley remains committed to the monthly United Dairy Farmers milk auction for the majority of its milk requirements Trevor Lockhart explained that a growing number of requests from shareholders and potential new entrants to the sector seeking to supply milk to the Society had contributed to the Board’s decision to introduce a direct supply opportunity as part of a more balanced milk procurement strategy.

‘Our approach is straightforward’ commented Trevor Lockhart, ‘we are committed to developing a long term partnership with milk suppliers through competitive milk pricing and our aim to add value to supplier relationships. We will seek to earn our reputation as a direct milk purchaser rather than buy it even if this means it will take longer to achieve our objectives.’

‘Fane Valley has been engaged in milk processing for almost 110 years. Having recently restructured our milk processing operations Fane Valley is now focused on the manufacture of a range of milk powder and butter products for sale in the UK, Europe, Africa, South America and Asia. Future investment plans will be directed towards adding value to our core products and improving operational efficiency.’

Trevor Lockhart continued, ‘Whilst pricing arrangements are clearly of primary importance to every milk producer we are also keen where possible to add value to the processor/producer relationship. The appointment of Richard Henning as Agriculture Manager at Fane Valley Dairies reflects our aspirations in this regard. Richard has a strong track record in providing advisory services to milk producers in the Armagh/Down area and he will bring a new dimension to the service we can provide.”

The opportunity to supply Fane Valley is available to any shareholder and any milk producer not currently supplying United Dairy Farmers. Further information is available from Richard Henning at Fane Valley Dairies 028 4066 2742