British dairy co-op in receivership

05/06/2009

Dairy Farmers of Britain is in receivership.

Milk quota broker agent Ian Potter said farmer suppliers faced losing an estimated £14,000 each in unpaid milk on top of an average farmer investment of £25,000 which has already been lost.

“It will undoubtedly be quoted in future and may well deter others from setting up co-operative ventures. But at least DFOB has now been taken to the vets and put out of its misery.”

The co-0perative was established in 2002 , has around 1800 farmer members who supply more than 1 billion litres of milk – about 10% of British milk production. It employs more than 2000 people.

Dairying in Britain is not in a healthy state. Production and cow numbers have fallen prompting farming leaders to urge retailers to pay a fair price for milk.

Organisations including the NFU, NFU Scotland, NFU Cymru and the FUW have written to retailers and food service industry to call for action to secure Britain’s milk supplies.

In the letter, the organisations said retailers, discounters and the food industry need to help increase confidence among dairy farmers to stop them leaving the sector.

Everyone in the milk supply chain needs to make a fair profit and retailers needed to stop gambling with the security of milk supplies, it said.

“Our message is very simple. If you want to guarantee a supply of quality British milk, cheese and dairy products you must take steps to secure it,” it added.

New Zealand producers may be concerned that the industry-wide group asked retailers and food service companies to commit to sourcing British dairy products because that will be direct competition for our milk and cheese.

Anyone who thinks promoting Kiwi-made is still a good idea should take note of this because if we urge domestic consumers to buy local, we can’t argue when overseas competitors urge their domestic consumers to buy local too.

Anti-Dismal posts on Canadian concerns about the impact the USA Buy-American campaign will have on them.

Protectionism by any other name still stinks.


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