Winding-up petition for Milk Link
By FWi staff
A GROUP of disgruntled dairy farmers members has issued an ultimatum to wind up the farmer-owned co-operative Milk Link.
The farmers claim Milk Link forced them to sign a financial support agreement against their better judgement.
Lawyers acting on their behalf will issue a petition to wind up the co-op unless the situation is resolved by 9 January.
The farmers consider the terms of the agreement unreasonable, saying it allows the co-op to deduct 0.5p a litre to build up members capital.
They claim the agreement also requires members to guarantee to allow up to 5p a litre over a year to be made available if banks call in loans to Milk Link.
What started as a “rebellion” by small farmers has now grown to include some much bigger producers.
Philip Hosking chairman of the Small Farms Association said: “These new developments are nothing to do with me. But it doesnt surprise me.
Ive told Milk Link time and again that what they did was questionable for all their members and not just small farmers.”
A Milk Link statement said: “The appropriate forum for these issues to be debated and resolved is the new democratically elected membership council.
Milk Link executives have repeatedly tried to reassure members that thorough assessments will be carried out before all potential purchases.
- Milk co-op rebels vow to fight on, FWi, 15 November 2001
- Pressure builds over Milk Link votes, FWi, 12 October 2001
- Milk Link quits mega-co-op talks, FWi, 02 February, 2001
- Thousands to ditch dairy firms, FWi, 19 January 2001