We believe in being open with our customers, particularly when something affects the price of an everyday essential like milk.
Within just weeks of launching The Milk Round Company, we have already seen significant increases in the price we pay for milk.
We spoke with our dairy today about what is happening, and they told us that another increase over the coming months cannot be ruled out.
So what is happening — and what does it mean for our customers?
A difficult year for British dairy farming
The exceptionally hot and dry weather this year has created difficult conditions for dairy farmers.
This isn't simply about having a few particularly warm summer days. Prolonged dry conditions affect the amount and quality of grass available for cattle, while high temperatures can also reduce milk yields.
The latest figures from the Agriculture and Horticulture Development Board (AHDB) show the scale of the problem.
GB milk deliveries during August were estimated at 992 million litres — 46 million litres, or 4.5%, lower than August last year. AHDB says extreme hot weather affected yields and that grass growth has been below the five-year average, with considerable differences between regions.
The situation has also meant that some farmers have already had to start using feed that would normally have been kept for winter. AHDB warns that this year's extreme temperatures could therefore have consequences for winter forage availability as well.
Less milk puts pressure on prices
When milk production falls while demand remains, there is inevitably pressure further along the supply chain.
AHDB reported in its August dairy market review that concerns about milk supplies contributed to increases in wholesale dairy prices. Its latest figures also show GB milk deliveries continuing to run below the same period last year.
That pressure ultimately reaches businesses like ours.
As a new local company, we're having to deal with these increases much sooner than we would have hoped.
But we don't want customers wondering why something has changed without explaining what is happening behind the scenes.
What are we going to do about our milk prices?
We've made a decision.
Rather than repeatedly changing our prices every time our costs move, we have now set our milk prices and are confident that we can work with them over the next six months.
That doesn't mean our own costs won't change.
They may.
Our dairy has told us that another increase cannot be ruled out, and the wider dairy market remains under pressure.
Where we can, The Milk Round Company will try to absorb as much of that pressure as reasonably possible rather than automatically passing every increase straight on to our customers.
Of course, no business can guarantee what will happen in an unpredictable market, but we believe this gives customers much more certainty than prices constantly moving up and down.
Doorstep delivery isn't the same as supermarket pricing
We're also realistic about where we sit in the market.
We aren't going to claim that doorstep milk delivery will always be cheaper than picking up milk from a major supermarket.
Supermarkets operate on an enormous scale.
What we can do is work hard to keep our prices competitive for a doorstep delivery service, while providing the convenience of having your regular milk brought directly to your home.
And your Milk Round can bring much more than milk.
Our growing range means customers can add other everyday products to their deliveries too, helping make the Milk Round a useful part of the weekly shop rather than simply somewhere to buy a bottle of milk.
We're also introducing another choice
We will continue supplying our fresh dairy milk, but we're also planning to introduce Müller milk as a slightly cheaper alternative.
That gives customers a choice.
Some may want to continue with their usual fresh dairy milk, while others may prefer the lower-priced option.
We think offering both is better than simply making that decision for everybody.
Supporting milk production through a difficult year
Behind every bottle is a much bigger supply chain, beginning with the farms producing the milk.
This year's weather has created genuine challenges. Reduced grass growth, heat stress and the need to use stored feed earlier than usual all have consequences.
And although the headline figure is a 4.5% year-on-year reduction in GB milk deliveries during August, the impact varies considerably between farms and regions.
Nobody can say with certainty what the next six months will bring.
What we can tell our customers is what we intend to do.
We'll continue working to keep our doorstep prices competitive.
We'll try to absorb increases where the business reasonably can.
We'll continue bringing fresh dairy milk to our customers.
We'll introduce an additional Müller option for customers looking for a slightly cheaper alternative.
And we'll keep developing the wider Milk Round so that your delivery can include much more than milk.
Most importantly, when something significant changes, we'll tell you why.
The Milk Round Company
Fresh. Local. Reliable.
Milk, bread, eggs, juice, dairy and more — delivered straight to your doorstep.