The Farmers’ Union of Wales has cautiously welcomed the recent UK Milk Purchasing Code draft policy. However there are some reservations regarding farmer-owned cooperative milk processors.
FUW Milk and Dairy Produce committee chairman Dei Davies said: “Hufenfa De Arfon, ARLA, First Milk and many more prove that co-operatives work. The new code should not put Co-operatives in a position where they are unable to re-invest profits and grow different parts of the business together with providing a long term economically viable farmgate price to benefit the co-operative as a whole.
“While it is not expected for milk purchasers to pay more to the farmer than what the market is worth at the time, neither is it right that they take advantage of farmers who are on fixed term contracts e.g 12 months to help them strike deals with big retailers to undercut other dairies.