IN A letter received by First Milk members yesterday morning, Richard Greenhalgh drove home the point that ex-farm prices would have to rise "to secure supply".
Greenhalgh, chairman of the co-operative owned by its 2,700 member farmers, wrote: "Liquid milk returns have lagged the wider market.
"The booming commodity prices that were a feature of the market until around November are now well gone, with s
ome ingredient prices now lower than they were at this time last year.
"However, the euro/pound exchange rate is helping our competitive position, particularly in the cheese markets.
"Our message is that it is reasonable that producers should be able to cover their costs and make a profit to invest in the business. Price negotiations are never easy, but our sales team is totally focused on pushing the message home with customers."
A recent report commissioned by First Milk and compiled by the consultants Promar made a very strong case for higher prices for farmers. In its wake, MPs, MSPs and Assembly Members in Wales have requested face-to-face discussions and First Milk is in the process of arranging meetings in Westminster, Edinburgh and Cardiff.
First Milk has no intention of standing still and has plans to develop the business, as Greenhalgh made clear in his letter.
He wrote: "The board has approved proposals for a new capital structure, the aim of which will be to reward your investment, based on the performance of the business. We will consult on the detail of the structure with local representatives in April, and also through the next round of discussion groups.
"In addition, while there was disappointment last month that we were unable to complete the merger deal with Milk Link, we continue to have a clear view on the shape of the business we need to create. As always, the gains will be hard earned, but we will not shrink from this task."
The full article contains 327 words and appears in The Scotsman newspaper.
