Milk producers promised value for money

The UK’s 15,000 milk producers have been promised “value for their levy money”, when Dairy Co Ltd replaces the Milk Development Council in April 2008.

Tim Bennett, incoming chairman of the new body, made the pledge at a Farmers Union of Wales/HSBC Bank conference on the eve of the Welsh Dairy Show at Carmarthen (12 November).

“Our business plan is not complete, but I can say that we will listen to producers and do all we can to avoid levying money to duplicate work already being done by others, like the big dairy companies,” said Mr Bennett.

Traumatic times

He indicated that the role of the new levy funded body would be to help milk producers through targeted research and development, knowledge transfer and the supply of market information.

Mr Bennett said the industry had been through traumatic times since he started producing milk.

The number of producers had fallen from about 100,000 to 15,000, but output was up from 13 to 14bn litres.

‘Milk is valued by buyers’

During the last year, milk production had fallen because price pressures became impossible. Thankfully 2007 had seen a much needed turn around, he said.

“This improvement in the market should be restoring confidence. Milk supply is more valued by buyers who were worried about falling production, even before the world upturn in price.

“I do not want to predict price, but the outlook is more robust than for many years.”

Consolidation

This gave the industry space to plan for the future and provided opportunities for consolidation, like the welcome merger of First Milk and Milk Link, he added.

But Mr Bennett warned that it was not all good news. Producers were still suffering the impact of steeply rising feed, fuel and power prices.

They also had to cope with movement regulations, and poor prices for barren cows and calves as a consequence of export restrictions.

“The attention has been on other sectors that have been more affected, particularly the sheep sector, but dairy farmers want more acknowledgement of their extra costs as well.”