By Andrew Shirley

AMELCA, the fledgling Derby-based milk processor, has told new producers that it has no market for their product.

The firm is due to have its new plant fully running by July, and was planning to sell the milk on the spot market until then.

But managing director, Len Jackson, said the spot price (presently about 15ppl) was much lower than predicted.

“We did offer to try to sell the milk for the best price we could get, but the vast majority [of producers] said they couldnt afford to take the drop.

“We do not like disappointing farmers, but we did not create the market.”

Over 50 farmers are reported to have resigned from First Milk to move to Amelca, but a spokesman for the company said many are now looking to rejoin.