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Milk Marque bonus welcome but price is still too low

17 November 1998
Milk Marque bonus welcome — but price is still too low

DAIRY producers have welcomed Milk Marques announcement of its first monthly bonus on milk sales – but voiced fears that the co-operatives price remains among the lowest in the market …more…

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Milk Marque bonus welcome but price is still too low

By FWi staff

DAIRY producers have welcomed Milk Marques announcement of its first monthly bonus on milk sales – but voiced fears that the co-operatives price remains among the lowest in the market.

The bonus of 0.4ppl for October of will be paid to farmers with their monthly milk cheque, which is due on farms from today (Tuesday) and indirectly raises the standard litre price to 18.6ppl.

“This is very welcome news indeed,” said MM member Jim Harrison. “Any increase is welcome because we want to see the price come back to a more realistic figure. Its a better price than I had anticipated, and definitely a good start.”

But many dairy farmers are still left struggling to make ends meet. Even with the trading bonus taken into account MM still offers about the lowest price in the market.

“Prices are abysmal at the moment,” said MM member Chris French. “It was only a couple of years ago that we were receiving 27ppl.

“Anything they pay us in addition to the standard price is a bonus, but its very difficult at the moment. Whatever they give us must be gratefully received but its hard to make ends meet at such a low price.

“This latest payment is not going to make that much difference.”

Milk Marques managing director Paul Beswick said the bonus was good news for farmers.

“Their achievement in reversing the downward trend in milk prices over the past two years is the result of their determination to stand together,” he said.

The bonus awarded to members will be reviewed each month, though MM will not comment on expectations for November and December.

However, industry consultant Mike Bessey suspects producers can expect further decent bonuses for the next couple of months at least. “This months is better than I expected, and should have lifted producers spirits.

December spot supplies recently achieved 24-25ppl, he points out. “I would have thought MM has achieved decent prices through to December. After that, who knows?”

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