Higher Milk Prices Finally Filtering Through To Farmers
UK - First Milk, the farmer-owned business with 2,800 members in Scotland, England and Wales and a throughput of two billion litres a year, yesterday announced that it is to up the price paid to producers by 0.5p per litre from 1 August
25 July 2007
2 minute read
Peter Humphreys, chief executive of First Milk, said: "We have been holding a very firm line with our customers in order to drive our members' price up. In our negotiations we are very clear that significant price increases are needed to reflect the current market situation. Our milk prices remain under constant review, and with the market likely to move prices on strongly, we are well placed to allow our members to benefit."
However, Ian Potter, a leading quota broker and industry commentator, reckons farmers are still being sold short. He said: "Milk is desperately scarce and those farmers under 12-month contracts are not surprisingly considering tendering their notice now so that they can keep their options open.
"Farmers no longer fear the power of their milk buyer - it is the farmer who has the power and the day of reckoning is fast approaching. But they have to be careful before changing their trading details so that they can exit current contracts quickly.
"It is likely that at least one milk buyer will take a farmer to court for breach of contract. However, if every angle has been covered and the move is made for the right reasons that producer will be better placed to defend his position."
Source: Scotsman
