Competition hots up over organic milk growers
Competition hots up over organic milk growers
TWO Welsh co-operatives and Axis now compete for milk from fewer than 40 fully converted organic milk producers.
Having failed to reach agreement with the 16 member Calon Wen co-operative, Somerset-based Organic Milk Suppliers Co-operative (OMSCo) has created OMSCo Wales. About 30 farmers have joined and it is busy recruiting members at agricultural shows.
OMSCo chief executive Sally Bagenal said the interests of all organic milk producers could be best served by a national integrated marketing strategy within which national interests in Wales and Scotland were safeguarded. Supermarkets did not recognise national borders and only the joint efforts of producers nationwide would make them strong sellers and help maintain standards.
While it made sense for the small number of producers in Wales to sell though a single co-op, she claimed that at talks Calon Wens strong emphasis on promoting Welsh organic milk and dairy products as superior appeared divisive and confrontational.
Dai Miles, chairman of Calon Wen, said both co-ops were offering similar prices, and both wanted the best deal for Welsh producers. But there was a fundamental difference in that Calon Wen wanted value added to Welsh milk in Wales, and not see it lose its identity by shipping it to England.
He claimed: "We were on the scene first and are very disappointed that it was not possible to persuade all Welsh producers to join us. But we are already ahead of our target of selling 8m litres in 2001 and have a contract with Horizon." *