3 August 2001

Milk Link price increase

SOUTHERN-BASED dairy co-op Milk Link has announced a 0.5p/litre price increase.

But chief executive, Barry Nicholls, says the only way to ensure higher prices in the future will be a restructuring of the business along the lines of European co-ops.

The new price equates to a 5% rise in payments, and follows the groups 7.5% boost in April. A producer on every-other-day collection averaging a daily 1400 litres will now receive 20.17p for a standard litre. Mr Nicholls says Milk Links members are now receiving 25% more than last April. He adds that a strategy of selling into higher value markets and a £1m cut in logistics costs has helped to facilitate the latest increase.

But he notes that only so much can be extracted from the market. "In the medium to long term we need to invest in processing capacity and return a share of the added value created by converting milk into products."

Members will vote on the proposed business changes on Aug 9. &#42