Foot-and-mouth puts milk merger on hold

By FWi staff

PRODUCER-GROUP meetings to agree the formation of a new 2 billion litre-plus farmer-owned milk marketing business with The Milk Group have been put on hold due to the foot-and-mouth crisis.

Announcing the postponement this week (01 March), the Association of Milk Producers chairman Bev Baker insisted it would not mean any slackening-off in the pace of the radical restructuring of raw milk marketing.

“We are taking the opportunity of this delay to work closely with The Milk Group to hammer out the fine detail of the new business we intend to create,” said Mr Baker.

“We will then be in a position to provide our members with all the information they need to make a rapid decision on resigning their direct supply contracts as soon as the foot-and-mouth crisis recedes.

“That way we can keep on target to create a new co-operative to strengthen our negotiating position, eliminate wasteful duplication and improve milk prices as early as possible in the 2001 milk year.”