Milk Co-op Decision An 'Utter Disgrace'
UK - NFU dairy board chairman Mansel Raymond has reacted strongly to news that future milk price increases at First Milk will only be paid to members who are ‘committed to the co-op’ and not under resignation.
4 August 2010
1 minute read
Earlier in the week, First Milk Chairman, Bill Mustoe said: "With the business performance continuing to improve, we are looking to maintain this momentum and a key part of that is planning and shaping the business for the future. The Board has therefore decided that we should recognise the value of members committed to the ongoing supply of volume and as a result, future price increases will only apply to members who are not under resignation."
Responding to this, Mr Raymond said: “First Milk’s decision to exclude any members under resignation from receiving further price increases is an utter disgrace. Whatever justification First Milk offers for doing this, for a farmer-owned business to act in this way sends out the wrong message entirely.
“First Milk is hardly top of the popularity stakes at the moment and this move will only reinforce a resigning member’s resolve to leave the co-op. Unfortunately this is, yet again, a classic example of poor milk contracts leaving dairy farmers completely exposed to a milk buyer’s appalling behaviour.
“I wonder if these resigning members would also be excluded from any future price decreases as well?”
TheCattleSite News Desk
