Up to 1000 direct milk sellers return to co-ops
Up to 1000 direct milk sellers return to co-ops
By Robert Harris
UP to 1000 dairy farmers in the midlands and Wales who supply processors direct could return to co-operative marketing after their representatives voted to switch this week.
Members of 12 groups belonging to the Association of Milk Producers will have the recommendation explained at meetings over the next four weeks.
The move marks another big step forward in the campaign, spearheaded by the Federation of Milk Producers, to persuade direct milk sellers to return to the co-operative fold. It comes just a few weeks after the northern-based Association of Dairy Farmers advised its 1500 members to join the new Axis and Scottish Milk business.
This latest step would more than double the milk volume traded by the quota-holding Milk Group – its 800 producer-shareholders currently supply about 700m litres of milk/year, and the AMP groups produce about 1.2bn litres of milk annually. This would give the Milk Group about 15% of the national supply.
"Our recommendation to join the Milk Group represents yet another significant boost for co-operative selling and yet another very positive step within the industry," says AMP chairman Bev Baker. The move comes after 40 producer meetings across the region, he adds. "Our grass-roots membership really supports this.
"At last we are seeing some unity in UK dairy farming, which can only help secure a better market price for producers milk."
Milk Group director Geoff Vickers says: "Our ambition to grow the Milk Groups business has taken another significant step forward." Benefits include shared milk haulage and administration, as well as a stronger marketing and negotiating position, he adds.
Milk Link, the southern-based co-op, was also trying to woo AMP members. "There was very little in it," says Mr Baker. "In the end, it basically came down to geography."
However, Milk Link seems the favoured partner for another big direct sellers association, West Country Milk Producers, most of whose 750 members supply Dairy Crest and Glanbia with about 500m litres/year.
WMP has also been speaking to several co-ops, but representatives of its groups are thought to be close to recommending a move to Milk Link.
All three associations are trying to achieve a firm commitment to milk co-operatives by the end of March. That would boost co-op milk volume by over 3bn litres. But, as one insider puts it: "Nothing can be taken for granted until the ink on members contracts is dry." *