Milk dual pricing slammed

MILK LINK‘S new dual pricing policy risks driving many of its suppliers to quit the industry, according to the chairman of supply co-op Mole Valley Farmers.

Ranald Fowler said farmers who block-calved in the spring or autumn were being unfairly penalised by the system, introduced in April, which was designed to flatten out the seasonal peaks and troughs of milk supply.

Milk produced during the spring flush above a farmer‘s A “quota” – based on average daily production during the previous August to December – receives a B price up to 50% lower.

Conversely, B milk produced in the autumn trough will receive a bonus payment.

However, Mr Fowler said: “Very few of these block calvers will qualify for the proposed B autumn increase.”

And not every producer could change their calving pattern, he added.

“It might be easier to leave than change a farm‘s whole management practice.”

But Mark Brooking, membership manager at Milk Link, said the system was the fairest way of coping with seasonality and, even though there were some losers, the majority of suppliers were getting paid more.

“We have not seen any evidence that more people are thinking of retiring than normal.”